Alkermes — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenues for the three months ended September 30, 2026, were $480.1 million, an increase from $394.2 million in the same period of 2025.
• Total revenues for the nine months ended September 30, 2026, were $1,369.1 million, compared to $1,091.4 million in 2025.
• GAAP net income for the quarter was $16.3 million, down from $82.8 million in 2025; GAAP net loss for the nine months was $49.7 million, compared to net income of $192.3 million in 2025.
• Adjusted EBITDA for the quarter was $120.1 million, compared to $121.5 million in 2025; for the nine months, it was $339.5 million, up from $293.7 million in 2025.
• R&D expense for the quarter was $121.1 million (GAAP) and $121.0 million (Non-GAAP), compared to $81.7 million in 2025.
• SG&A expense for the quarter was $208.5 million (GAAP) and $207.5 million (Non-GAAP), compared to $171.8 million in 2025.
• Cash, cash equivalents, and total investments were $787.6 million as of September 30, 2026, up from $691.6 million as of June 30, 2026.
• Long-term debt was $1.47 billion, with a current portion of $26.5 million as of September 30, 2026.

Guidance and Future Outlook:

• The company reiterated its financial expectations for 2026 as previously set forth in its July 28, 2026 press release.
• Management expects several important clinical data readouts over the year ahead regarding the orexin development portfolio.

Business Segments and Product Lines:

• Proprietary product revenues totaled $417.3 million for the quarter, up from $317.4 million in 2025.
• VIVITROL revenues were $127.6 million for the quarter, including approximately $8 million related to gross-to-net favorability.
• ARISTADAi revenues were $103.9 million for the quarter, including approximately $4 million of inventory benefit and $3 million related to gross-to-net favorability.
• LYBALVI revenues were $95.9 million for the quarter, including approximately $2 million of inventory benefit; total prescriptions grew 18% compared to the third quarter of 2025.
• LUMRYZ revenues were $89.9 million for the quarter, with approximately 4,100 patients on therapy at the end of the quarter.
• VUMERITY manufacturing and royalty revenues were $29.5 million for the quarter.
• Royalty revenue from XEPLION, INVEGA TRINZA/TREVICTA, and INVEGA HAFYERA/BYANNLI was $26.4 million for the quarter.
• The company advanced its orexin 2 receptor agonist portfolio, highlighting clinical proof-of-concept data in ADHD and the initiation of a Phase 2 study in major depressive disorder.

Market and Competitive Landscape:

• The company maintains a leadership position in orexin-based research for central disorders of hypersomnolence and other neuropsychiatric conditions.
• The company faces risks related to the potential entry of generic forms of its products or competitive products.

Risks and Challenges:

• Forward-looking statements are subject to risks including the inability to achieve financial expectations, clinical development delays, unfavorable clinical results, and adverse regulatory decisions.
• Risks include unfavorable outcomes of litigation, products proving ineffective or unsafe, changes in competitive landscape, and potential reductions in reimbursement rates.
• The company's products may face manufacturing difficulties or preclusion from commercialization due to third-party proprietary rights.

Management Commentary and Tone:

• Blair Jackson, President and CEO, described the third quarter performance as "solid commercial and financial performance."
• Management expressed confidence in the company's leadership position in orexin biology and its ability to drive long-term shareholder value through a steady cadence of clinical data readouts.

Other Key Points:

• The press release includes significant transaction adjustments related to the acquisition of Avadel Pharmaceuticals plc, including $20.2 million of share-based compensation expense for former Avadel employees that vested upon closing.
• Costs related to the Avadel acquisition totaled $29.8 million for the quarter and $118.1 million for the nine months.
• The company hosts a conference call and webcast on November 3, 2026, to discuss results.
• The company operates as a global biopharmaceutical focused on neuroscience, with headquarters in Ireland and R&D centers in Massachusetts and Ohio.