GET DAILY SIGNALSAlkermes (ALKS) Q3 2026 Results Show Revenue Momentum From LUMRYZ Integration
Key Takeaways
- Alkermes reported third quarter 2026 total revenue of $480.1 million, up about 22% from $394.2 million in the prior-year period.
- Diluted earnings per share (EPS) came in at $0.09, beating the consensus estimate of a loss of $0.08 per share, while revenue also topped the $463.35 million consensus.
- Proprietary product net sales rose 31.5% year over year to $417.3 million, led by the newly added sleep medicine LUMRYZ, which contributed $89.9 million.
- GAAP (Generally Accepted Accounting Principles) net income fell to $16.3 million from $82.8 million a year earlier, weighed down by Avadel acquisition-related costs and higher expenses.
- Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was $120.1 million, and the company reiterated its full-year 2026 financial expectations.
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Earnings Context and Why It Matters
Alkermes is navigating a strategic shift following the mid-February 2026 close of its Avadel Pharmaceuticals acquisition, which added the once-nightly sleep medicine LUMRYZ to its commercial lineup. The transaction expanded the proprietary portfolio to four brands, complementing established products in addiction and psychiatry. These third-quarter figures provide an early look at LUMRYZ's integration progress and the durability of the legacy franchises. Acquisition accounting items are obscuring GAAP results, so the more telling indicators are revenue trends, prescription data, and adjusted profitability metrics that clarify the company's ability to support its pipeline while maintaining commercial expansion.
Reported Results
In the quarter ended September 30, 2026, Alkermes posted total revenue of $480.1 million versus $394.2 million a year earlier. Proprietary product net sales increased 31.5% to $417.3 million, with VIVITROL at $127.6 million, ARISTADA at $103.9 million, LYBALVI at $95.9 million, and LUMRYZ adding $89.9 million. Manufacturing and royalty revenue declined to $62.9 million from $76.8 million. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
GAAP net income dropped to $16.3 million from $82.8 million, reflecting roughly $29.8 million in acquisition-related costs and $19.7 million in amortization of acquired intangibles. Diluted EPS was $0.09 compared with $0.49 previously, though well above the consensus expectation of an $0.08 loss. Adjusted EBITDA reached $120.1 million versus $121.5 million in the year-ago quarter. Cash and total investments stood at approximately $787.6 million, and full-year 2026 guidance was reaffirmed across all items.
Market Reaction and Investor Sentiment
The quarter delivered a beat on both revenue and EPS, with the $0.09 per share result significantly ahead of the projected $0.08 loss and top-line figures exceeding expectations. Strength in proprietary sales, including LUMRYZ reaching roughly 4,100 patients on therapy, drove the upside. Interpretation remains measured, however, given the sharp year-over-year decline in GAAP profitability from acquisition accounting and elevated operating expenses. Market focus will likely center on underlying demand growth and reaffirmed guidance versus the near-term impact on reported earnings from the Avadel integration.
Forward Outlook and Key Factors to Monitor
Alkermes reaffirmed its 2026 guidance and provided initial commentary on 2027. Management projects proprietary product net sales of $400 million to $420 million in the fourth quarter, supporting continued momentum. For the full year 2026, the proprietary portfolio is expected to generate nearly $1.6 billion in net sales.
Key items to watch include a lower cost-of-goods-sold profile in 2027 once the non-cash inventory fair-value step-up from the Avadel deal rolls off, which should support margin normalization. LYBALVI's gross-to-net deductions, at about 42% in the quarter, are anticipated to move toward 45% next year as payer access expands. Prescription volume growth near 20% year over year is expected to help offset that pressure. On the pipeline, Phase III BRILLIANCE studies for elixorexin in narcolepsy are underway with top-line data beginning mid-2027, while Phase II VIBRANCE-3 results in idiopathic hypersomnia could inform further development. Balancing increased R&D outlays with solid cash generation and adjusted EBITDA remains central to sustaining the next phase of growth.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
ALKS in upward trend: price rose above 50-day moving average on October 26, 2026
ALKS moved above its 50-day moving average on October 26, 2026 date and that indicates a change from a downward trend to an upward trend. In 38 of 49 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 78%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where ALKS's RSI Oscillator exited the oversold zone, 14 of 21 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 67%.
The Momentum Indicator moved above the 0 level on October 19, 2026. You may want to consider a long position or call options on ALKS as a result. In 77 of 102 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 75%.
The Moving Average Convergence Divergence (MACD) for ALKS just turned positive on October 05, 2026. Looking at past instances where ALKS's MACD turned positive, the stock continued to rise in 32 of 43 cases over the following month. The odds of a continued upward trend are 74%.
The 10-day moving average for ALKS crossed bullishly above the 50-day moving average on October 30, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 15 of 20 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 75%.
Following a +2.37% 3-day Advance, the price is estimated to grow further. Considering data from situations where ALKS advanced for three days, in 201 of 276 cases, the price rose further within the following month. The odds of a continued upward trend are 73%.
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 9 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ALKS declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 65%.
ALKS broke above its upper Bollinger Band on October 20, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for ALKS entered a downward trend on October 23, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 1 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of 7 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 40 (best 1 - 100 worst), indicating steady price growth. ALKS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 44 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 84, placing this stock slightly better than average.
The Tickeron SMR rating for this company is 85 (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 100 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.164) is normal, around the industry mean (8.029). ALKS has a moderately high P/E Ratio (112.225) as compared to the industry average of (-0.853). ALKS's Projected Growth (PEG Ratio) (21.570) is very high in comparison to the industry average of (2.152). Dividend Yield (0.000) settles around the average of (0.047) among similar stocks. P/S Ratio (4.638) is also within normal values, averaging (178.797).
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a manufacturer of pharmaceutical products
Industry PharmaceuticalsGeneric
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