Alkermes Revenue Accelerates as LUMRYZ Drives Proprietary Sales
Adjusted EBITDA climbed to $139.2 million as the quarterly margin expanded to about 28%.
Alkermes plc (ALKS) posted faster second-quarter revenue growth as newly acquired sleep-disorder drug LUMRYZ lifted proprietary-product sales.
The biopharmaceutical company generated revenue of $496.0 million, up 27% from a year earlier and 26% from the first quarter. Proprietary-product sales rose 34% year over year to $411.7 million, while manufacturing and royalty revenue was nearly flat at $84.3 million, concentrating the quarter’s growth in Alkermes’ own medicines.
LUMRYZ contributed $96.6 million, up from $39.5 million in the first quarter, which included sales only after Alkermes acquired Avadel Pharmaceuticals on Feb. 12. Second-quarter sales included about $7 million from inventory shipment timing.
Growth across Alkermes’ established products was mixed. LYBALVI sales increased sequentially to $94.0 million, though year-over-year growth slowed to 12% from 32% in the first quarter as prescription growth eased. ARISTADA sales rose from the first quarter and fell 5% from a year earlier, while VIVITROL increased sequentially to $124.5 million and grew 2% year over year.
Adjusted EBITDA increased from $80.3 million in the first quarter and $126.5 million a year earlier, with the adjusted margin rising from about 20% sequentially. GAAP net income improved to $0.5 million from a first-quarter loss of $66.5 million, and EBITDA swung to positive $49.0 million from negative $30.1 million.
Year-over-year GAAP profitability weakened as acquisition accounting and higher expenses offset the revenue gain. Operating income fell to $18.4 million from $93.0 million, while net income declined from $87.1 million. The Avadel transaction added $22.6 million of intangible-asset amortization and a $26.4 million contingent-consideration remeasurement; cost of goods sold, research spending and selling and administrative expenses also increased.
Alkermes now expects a 2026 net loss of $95 million to $115 million, $25 million wider than its previous range, and EBITDA of $75 million to $95 million. The company maintained revenue guidance of $1.73 billion to $1.84 billion and adjusted EBITDA guidance of $370 million to $410 million. The reduced GAAP outlook reflected an approximately $25 million fair-value charge tied to positive phase 3 LUMRYZ results in idiopathic hypersomnia.
Cash, equivalents and investments rose to $691.6 million at June 30 from $538.2 million at March 31, partially rebuilding liquidity after Alkermes used about $775 million of cash and raised $1.525 billion in term loans to finance the Avadel acquisition.