Alkermes posts break-even Q2 as Lumryz adds $96.6M in first full quarter

Key Takeaways:

Revenue of $496 million beat consensus by about $42 million
Lumryz contributed $96.6 million in its first full quarter post-Avadel
Management maintained 2026 revenue guidance of $1.73 billion to $1.84 billion

Alkermes plc reported break-even earnings for the second quarter of 2026, missing the year-ago profit of 52 cents a share as acquisition charges weighed on the bottom line, while revenue surged 27% to $496 million on the first full-quarter contribution from sleep drug Lumryz.

"The results reflect the strength of our commercial portfolio and the successful integration of the Avadel acquisition," Chief Commercial Officer Todd Nichols said on the earnings call, which was Chief Executive Officer Richard Pops' final before handing the role to Blair Jackson on Aug. 1.

Revenue beat the consensus estimate of $454 million, according to Zacks, driven by a 34% jump in proprietary product sales to $411.7 million. Lumryz, the once-at-bedtime oxybate for narcolepsy acquired through the Avadel deal in February, generated $96.6 million. VIVITROL contributed $124.5 million, ARISTADA added $96.7 million and LYBALVI rose 12% to $94 million. Manufacturing and royalty revenue totaled $84.3 million.

The company ended the quarter with about $690 million in cash and total investments. Research and development spending rose 46% to $112.9 million as Alkermes advanced its orexin pipeline, while selling, general and administrative expenses climbed 27% to $217.6 million.

Orexin Pipeline Advances Across Multiple Indications

Alkermes is enrolling patients in the Phase III Brilliance studies of alixorexton for narcolepsy type 1 and type 2, with completion expected next year. In idiopathic hypersomnia, enrollment in the once-daily dosing cohorts of the Phase II Vibrance-3 study is complete, with a split-dose cohort still enrolling and top-line data expected in the fourth quarter. The company also expects results by the end of the third quarter from a Phase Ib study of ALKS 7290 in adult ADHD, with a larger Phase II study set to begin enrollment this quarter. ALKS 4510 is scheduled to enter a Phase IIa fatigue study later this year.

Guidance Maintained, GAAP Loss Widens on Contingent Consideration

Alkermes reiterated its full-year 2026 revenue outlook of $1.73 billion to $1.84 billion and adjusted EBITDA of $370 million to $410 million. The company revised its expected GAAP net loss to $95 million to $115 million from a prior range, reflecting a $26.4 million increase in the fair value of contingent consideration tied to a Lumryz milestone after positive idiopathic hypersomnia data. For the third quarter, Alkermes forecast total revenue of $450 million to $470 million and adjusted EBITDA of $80 million to $100 million.

The break-even quarter signals that acquisition-related costs will continue to pressure near-term profitability even as the top line expands. Investors will watch for Lumryz's supplemental new drug application in idiopathic hypersomnia, expected by year-end, and the alixorexton Phase III data next year as the next catalysts.

This article is for informational purposes only and does not constitute investment advice.