# Alkermes plc. (ALKS)

Informational only - not investment advice.

CIK: 0001520262
SIC: 2834 Pharmaceutical Preparations
SIC breadcrumb: [Manufacturing](/division/D/) > [Chemicals And Allied Products](/major-group/28/) > [SIC 2834 Pharmaceutical Preparations](/industry/2834/)
Latest 10-K filed: 2026-02-25
SEC page: https://www.sec.gov/edgar/browse/?CIK=1520262
Filing source: https://www.sec.gov/Archives/edgar/data/1520262/000119312526068925/alks-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-25 · accession 0001193125-26-068925 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001520262.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 1,475,899,000 USD | 2025 | verified |
| Net income | 241,664,000 USD | 2025 | verified |
| Assets | 2,486,993,000 USD | 2025 | verified |
| Free cash flow | 480,334,000 USD | 2025 | computed |
| Net margin | 16.37% | 2025 | computed |
| Operating margin | 17.21% | 2025 | computed |
| Revenue YoY | -5.25% | 2025 | computed |
| ROE | 13.28% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | ALKS | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 16.4% | 1.0% | 73 | 107 |
| Operating margin | 17.2% | -1.3% | 74 | 100 |
| Revenue growth | -5.2% | 14.7% | 18 | 127 |
| FCF margin | 32.5% | -14.0% | 89 | 127 |
| ROE | 13.3% | -30.7% | 81 | 171 |
| ROA | 9.7% | -21.8% | 85 | 187 |
| Liabilities / equity | 0.37 | 0.38 | 47 | 173 |
| Current ratio | 3.55 | 4.89 | 36 | 188 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 2834 Pharmaceutical Preparations, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 1475899000 | USD | 2025 | 2026-02-25 |
| Net income | 241664000 | USD | 2025 | 2026-02-25 |
| Assets | 2486993000 | USD | 2025 | 2026-02-25 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-25. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001520262.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2010 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  |  |  |  |  | 745,694,000 | 903,374,000 | 1,094,274,000 | 1,170,947,000 | 1,038,756,000 | 1,173,751,000 | 1,111,795,000 | 1,663,405,000 | 1,557,632,000 | 1,475,899,000 |
| Net income |  |  |  |  |  | -208,444,000 | -157,945,000 | -139,311,000 | -196,620,000 | -110,861,000 | -48,169,000 | -158,267,000 | 355,757,000 | 367,070,000 | 241,664,000 |
| Operating income |  |  |  |  |  | -208,665,000 | -147,900,000 | -99,128,000 | -175,479,000 | -112,427,000 | 97,746,000 | -6,089,000 | 414,122,000 | 420,636,000 | 253,956,000 |
| Diluted EPS |  | -0.99 | 0.14 | -0.21 | -1.52 |  |  |  |  | -0.70 | -0.29 | -0.97 | 2.10 | 2.17 | 1.43 |
| Operating cash flow |  |  |  |  |  | -63,802,000 | 19,190,000 | 99,281,000 | 72,077,000 | 82,842,000 | 101,715,000 | 21,044,000 | 401,353,000 | 439,124,000 | 520,754,000 |
| Capital expenditures |  |  |  |  |  | 43,657,000 | 51,300,000 | 69,431,000 | 90,942,000 | 42,219,000 | 28,020,000 | 38,255,000 | 48,048,000 | 33,484,000 | 40,420,000 |
| Share buybacks | 2,684,000 |  |  |  |  |  |  |  |  |  |  |  |  | 200,282,000 |  |
| Assets |  |  |  |  |  | 1,726,423,000 | 1,797,227,000 | 1,825,007,000 | 1,805,403,000 | 1,949,730,000 | 2,024,484,000 | 1,963,978,000 | 2,136,223,000 | 2,055,567,000 | 2,486,993,000 |
| Liabilities |  |  |  |  |  | 516,942,000 | 594,419,000 | 653,722,000 | 719,961,000 | 882,748,000 | 911,900,000 | 920,225,000 | 933,537,000 | 590,590,000 | 667,698,000 |
| Stockholders' equity |  |  |  |  |  | 1,209,481,000 | 1,202,808,000 | 1,171,285,000 | 1,085,442,000 | 1,066,982,000 | 1,112,584,000 | 1,043,753,000 | 1,202,686,000 | 1,464,977,000 | 1,819,295,000 |
| Cash and cash equivalents |  |  |  |  |  | 186,378,000 | 191,296,000 | 266,762,000 | 203,771,000 | 272,961,000 | 337,544,000 | 292,473,000 | 457,469,000 | 291,146,000 | 388,570,000 |
| Free cash flow |  |  |  |  |  | -107,459,000 | -32,110,000 | 29,850,000 | -18,865,000 | 40,623,000 | 73,695,000 | -17,211,000 | 353,305,000 | 405,640,000 | 480,334,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2010 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  |  |  |  |  | -27.95% | -17.48% | -12.73% | -16.79% | -10.67% | -4.10% | -14.24% | 21.39% | 23.57% | 16.37% |
| Operating margin |  |  |  |  |  | -27.98% | -16.37% | -9.06% | -14.99% | -10.82% | 8.33% | -0.55% | 24.90% | 27.00% | 17.21% |
| Return on equity |  |  |  |  |  | -17.23% | -13.13% | -11.89% | -18.11% | -10.39% | -4.33% | -15.16% | 29.58% | 25.06% | 13.28% |
| Return on assets |  |  |  |  |  | -12.07% | -8.79% | -7.63% | -10.89% | -5.69% | -2.38% | -8.06% | 16.65% | 17.86% | 9.72% |
| Liabilities / equity |  |  |  |  |  | 0.43 | 0.49 | 0.56 | 0.66 | 0.83 | 0.82 | 0.88 | 0.78 | 0.40 | 0.37 |
| Current ratio |  |  |  |  |  | 3.73 | 2.78 | 2.89 | 2.46 | 2.53 | 2.25 | 2.27 | 2.86 | 3.04 | 3.55 |

## As-reported value updates

2 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/ALKS/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-28. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001520262.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | -0.39 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | -0.25 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 1.38 | reported discrete quarter |
| 2023-Q3 | 2023-06-30 |  | 237,065,000 |  | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 380,938,000 |  | 0.28 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 377,475,000 | 112,779,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 350,372,000 | 36,828,000 | 0.21 | reported discrete quarter |
| 2024-Q2 | 2024-03-31 |  | 36,828,000 |  | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 399,131,000 |  | 0.53 | reported discrete quarter |
| 2024-Q3 | 2024-06-30 |  | 91,358,000 |  | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 378,143,000 |  | 0.55 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 429,986,000 | 146,503,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 306,510,000 | 22,464,000 | 0.13 | reported discrete quarter |
| 2025-Q2 | 2025-03-31 |  | 22,464,000 |  | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 390,657,000 |  | 0.52 | reported discrete quarter |
| 2025-Q3 | 2025-06-30 |  | 87,098,000 |  | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 394,185,000 |  | 0.49 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 384,547,000 | 49,341,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 392,911,000 | -66,480,000 | -0.40 | reported discrete quarter |
| 2026-Q2 | 2026-03-31 |  | -66,480,000 |  | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 496,009,000 |  | 0.00 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from ALKS's latest 10-K: [/company/ALKS/business/](/company/ALKS/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from ALKS's latest 10-K: [/company/ALKS/risk-factors/](/company/ALKS/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1520262/000119312526319022/alks-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-07-28
Report date: 2026-06-30

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with the accompanying condensed consolidated financial statements and related notes beginning on page 5 in this Form 10-Q, and “Part II, Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the audited financial statements and notes thereto accompanying our Annual Report.

Executive Summary

Net income was $0.5 million or $0.00 per ordinary share—basic and diluted, for the three months ended June 30, 2026 and net loss was $66.0 million or $0.40 per ordinary share—basic and diluted, for the six months ended June 30, 2026, compared to net income of $87.1 million and $109.6 million or $0.53 and $0.67 per ordinary share—basic and $0.52 and $0.65 per ordinary share—diluted, for the three and six months ended June 30, 2025, respectively.

The decrease in net income of $86.6 million during the three months ended June 30, 2026, as compared to the three months ended June 30, 2025, was primarily due to increases in total operating expenses and interest expense of $180.0 million and $25.9, respectively. These increases were primarily related to the Avadel Acquisition. The increase in total revenues of $105.4 million during the three months ended June 30, 2026, as compared to the three months ended June 30, 2025, was primarily due to the addition of LUMRYZ to our proprietary product portfolio.

The change in net loss of $175.5 million during the six months ended June 30, 2026, as compared to the six months ended June 30, 2025, was primarily due to increases in total operating expenses and interest expense of $328.5 million and $46.8 million, respectively, primarily related to the Avadel Acquisition. The increase in total revenues of $191.8 million during the six months ended June 30, 2026, as compared to the six months ended June 30, 2025, was primarily due to an increase in LYBALVI product sales, net and the addition of LUMRYZ, as previously noted.

These items are discussed in greater detail later in the “Results of Operations” section in this “Part I, Item 2—Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Form 10-Q.

Products

Marketed Products

The key marketed products discussed below have generated, or are expected to generate, significant revenues for us. See the descriptions of the marketed products below and “Part I, Item 1A—Risk Factors” in our Annual Report for important factors that could adversely affect our marketed products. See the “Patents and Proprietary Rights” section in “Part I, Item 1—Business” in our Annual Report for information with respect to the IP protection for these marketed products.

30

The following provides summary information regarding our proprietary products that we commercialize:

Proprietary Products

[[GREPCENT_TABLE]]
[["Product","","Indicated Disease State","","","Territory"],["","","Schizophrenia (Initiation or re-initiation of ARISTADA)","","","U.S."],["","Schizophrenia","","","U.S."],["","","Narcolepsy","","","U.S."],["","","Schizophrenia;Bipolar I disorder","","","U.S."],["","","Alcohol dependence;Opioid dependence","","","U.S."]]
[[/GREPCENT_TABLE]]

31

The following provides summary information regarding certain key third-party products using our proprietary technologies under license and our key licensed product, that are commercialized by our licensees:

Key Third-Party Products Using Our Proprietary Technologies

[[GREPCENT_TABLE]]
[["Product","","Indicated Disease State","","Licensee","","Licensed Territory"],["INVEGA SUSTENNA / XEPLION","","INVEGA SUSTENNA:Schizophrenia; Schizoaffective disorder XEPLION:Schizophrenia","","Janssen Pharmaceutica (together with Janssen Pharmaceuticals, Inc., Janssen International and their affiliates \u201cJanssen\u201d)","","Worldwide"],["INVEGA TRINZA / TREVICTA","","Schizophrenia","","Janssen","","Worldwide"],["INVEGA HAFYERA / BYANNLI","","Schizophrenia","","Janssen","","Worldwide"]]
[[/GREPCENT_TABLE]]

Our Key Licensed Product

[[GREPCENT_TABLE]]
[["Product","","Indicated Disease State","","Licensee","","Licensed Territory"],["VUMERITY","","Multiple sclerosis","","Biogen","","Worldwide"]]
[[/GREPCENT_TABLE]]

Proprietary Products

We have developed and now commercialize products designed to help address the unmet needs of people living with opioid dependence, alcohol dependence, schizophrenia, bipolar I disorder and narcolepsy. See the “Patents and Proprietary Rights” section in “Part I, Item 1—Business” in our Annual Report for information with respect to the IP protection for our proprietary products.

ARISTADA and ARISTADA INITIO

ARISTADA (aripiprazole lauroxil) is an extended-release intramuscular injectable suspension approved in the U.S. for the treatment of schizophrenia. ARISTADA utilizes our proprietary LINKERX technology. ARISTADA is a prodrug; once in the body, ARISTADA is likely converted by enzyme-mediated hydrolysis to N-hydroxymethyl aripiprazole, which is then hydrolyzed to aripiprazole. ARISTADA is available in four dose strengths with once-monthly dosing options (441 mg, 662 mg and 882 mg), a six-week dosing option (882 mg) and a two-month dosing option (1064 mg). ARISTADA is packaged in a ready-to-use, pre-filled syringe product format. We exclusively manufacture and commercialize ARISTADA in the U.S.

In May 2026 and June 2026, respectively, U.S. Patent No. 12,629,366 and U.S. Patent No. 12,653,822 relating to ARISTADA were granted. U.S. Patent No. 12,629,366 has claims to the pharmaceutical composition of ARISTADA and expires in 2032. U.S. Patent No. 12,653,822 has claims to the treatment of schizophrenia by rapid and continuous intramuscular injection and expires in 2035.

ARISTADA INITIO (aripiprazole lauroxil) leverages our proprietary LINKERX and NANOCRYSTAL technologies and provides an extended-release formulation of aripiprazole lauroxil in a smaller particle size compared to ARISTADA, thereby enabling faster dissolution and more rapid achievement of relevant levels of aripiprazole in the body. ARISTADA INITIO, combined with a single 30 mg dose of oral aripiprazole, is indicated for the initiation of ARISTADA when used for the treatment of schizophrenia in adults. The first ARISTADA dose may be administered on the same day as the ARISTADA INITIO regimen or up to 10 days thereafter. We exclusively manufacture and commercialize ARISTADA INITIO in the U.S.

32

In June 2026, U.S. Patent No. 12,642,798 relating to ARISTADA INITIO was granted. The patent has claims to the manufacturing process and expires in 2035.

LUMRYZ

LUMRYZ (sodium oxybate) is an extended-release oral suspension product approved by the FDA in May 2023 and October 2024 as the first and only once-at-bedtime treatment for cataplexy or excessive daytime sleepiness (“EDS”) in adults with narcolepsy and in pediatric patients seven years of age and older with narcolepsy, respectively. The FDA has granted seven years of orphan drug exclusivity (“ODE”) to LUMRYZ for the adult and pediatric narcolepsy patient populations through May 1, 2030 and October 16, 2031, respectively. We exclusively commercialize LUMRYZ in the U.S. Pursuant to the settlement and license agreement entered into between Jazz Pharmaceuticals entities and Avadel entities in October 2025 (the “Avadel Settlement Agreement”), from October 1, 2025, Jazz receives a royalty of 3.85% (subject to certain adjustments set forth in the Avadel Settlement Agreement) on net sales of LUMRYZ sold for narcolepsy and additional royalties on net sales of LUMRYZ sold for any other non-narcolepsy indications. For more information about the Avadel Settlement Agreement and underlying royalty obligations, see “Patents and Proprietary Rights – LUMRYZ” in “Item 1—Business” in our Annual Report.

LUMRYZ employs a version of our MICROPUMP technology. LUMRYZ is manufactured by third parties. The FDA has required implementation of a risk evaluation and mitigation strategy (“REMS”) for LUMRYZ to help ensure the benefits of the drug outweigh any risks of serious adverse outcomes that may result from inappropriate prescribing, misuse, abuse or diversion of the product. Under the LUMRYZ REMS, healthcare providers who prescribe the drug must be specially certified, pharmacies that dispense the drug must be specially certified, and the drug must be dispensed only to patients who have enrolled in the LUMRYZ REMS and completed all REMS requirements, including documentation of safe use conditions.

LYBALVI

LYBALVI (olanzapine and samidorphan) is a once-daily, oral atypical antipsychotic drug approved in the U.S. for the treatment of adults with schizophrenia and for the treatment of adults with bipolar I disorder, as a maintenance monotherapy or for the acute treatment of manic or mixed episodes, as monotherapy or an adjunct to lithium or valproate. LYBALVI is a combination of olanzapine, an atypical antipsychotic, and samidorphan, an opioid antagonist, in a single bilayer tablet. LYBALVI is available in fixed dosage strengths composed of 10 mg of samidorphan and 5 mg, 10 mg, 15 mg or 20 mg of olanzapine. We exclusively manufacture and commercialize LYBALVI in the U.S.

For a discussion of legal proceedings related to LYBALVI, see Note 18, Commitments and Contingent Liabilities in the “Notes to Condensed Consolidated Financial Statements” in this Form 10-Q, and for information about risks relating to such legal proceedings, see “Part I, Item 1A—Risk Factors” in our Annual Report and specifically the section entitled “Uncertainty over IP in the biopharmaceutical industry has been the source of litigation and other legal proceedings, and we and our licensees have previously and may in the future face claims against IP rights covering our products and competition from generic drug manufacturers.”

VIVITROL

VIVITROL (naltrexone for extended-release injectable suspension) is a once-monthly, non-narcotic, injectable medication approved in the U.S. for the treatment of alcohol dependence in patients able to abstain from alcohol in an outpatient setting prior to initiation of treatment with VIVITROL and for the prevention of relapse to opioid dependence, following opioid detoxification. VIVITROL uses our polymer-based microsphere injectable extended-release technology to deliver and maintain therapeutic medication levels in the body through one intramuscular injection every four weeks. We exclusively manufacture and commercialize VIVITROL in the U.S.

For a discussion of legal proceedings related to VIVITROL, see Note 18, Commitments and Contingent Liabilities in the “Notes to Condensed Consolidated Financial Statements” in this Form 10-Q, and for information about risks relating to such legal proceedings, see “Part I, Item 1A—Risk Factors” in our Annual Report and specifically the sections entitled “Uncertainty over IP in the biopharmaceutical industry has been the source of litigation and other legal proceedings, and we and our licensees have previously and may in the future face claims against IP rights covering our products and competition from generic drug manufacturers” and “Litigation or arbitration filed against Alkermes, including securities litigation, or actions (such as citizens petitions) filed against regulatory agencies in respect of our products, may result in financial losses, harm our reputation, divert management resources, negatively impact the approval of our products, or otherwise negatively impact our business.”

33

Products Using Our Proprietary Technologies and Licensed Product

We have licensed products to third parties for commercialization and have licensed our proprietary technologies to third parties to enable them to develop, commercialize and/or manufacture products. See the “Proprietary Technology Platforms” and “Patents and Proprietary Rights” sections in “Part I, Item 1—Business” in our Annual Report for inf

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1520262/000119312526068925/alks-20251231.htm
Complete FY 2025 MD&A: /company/ALKS/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-02-25
Report date: 2025-12-31

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following should be read in conjunction with our consolidated financial statements and related notes beginning on page F-1 of this Annual Report. The following discussion contains forward-looking statements. Actual results may differ significantly from those projected in the forward-looking statements. See “Cautionary Note Concerning Forward-Looking Statements” on page 3 of this Annual Report. Factors that might cause future results to differ materially from those projected in the forward-looking statements also include, but are not limited to, those discussed in “Item 1A—Risk Factors” and elsewhere in this Annual Report. A detailed discussion of our 2023 financial condition and results of operations, and of 2024 year-over-year changes as compared to 2023, can be found in “Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the SEC on February 12, 2025.

Overview

We have a portfolio of proprietary products that we manufacture, market and/or sell in the U.S., which in 2025 was comprised of ARISTADA, ARISTADA INITIO, LYBALVI and VIVITROL. We also earned manufacturing and/or royalty revenues on net sales of products commercialized by our licensees, the most significant of which in 2025 were the long-acting INVEGA products and VUMERITY. We expect ARISTADA, ARISTADA INITIO, LYBALVI, VIVITROL and VUMERITY, and our new product, LUMRYZ, which we acquired and began to market and sell in the U.S. in February 2026, to generate significant revenues for us in the near- and medium-term as we believe these products are singular or competitively advantaged products in their classes.

In 2025, our net income from continuing operations was $241.7 million, as compared to $372.1 million in 2024. The decrease in net income from continuing operations of $130.5 million was primarily due to an increase in total expenses of $84.9 million and a decrease of $182.8 million in manufacturing and royalty revenues. These items were partially offset by an increase in product sales, net of $101.1 million and a decrease in our income tax provision of $21.8 million. These items are discussed in further detail within the “Results of Operations” section below.

Business Update

In October 2025, we entered into the Transaction Agreement with Avadel, which was subsequently amended in November 2025, pursuant to which we agreed to acquire the entire issued and to be issued ordinary share capital of Avadel for consideration of (i) $21.00 per Avadel Share, payable in cash at closing and (ii) a non-transferable CVR entitling holders of Avadel Shares to a potential additional cash payment of $1.50 per Avadel Share, contingent upon achievement of a certain specified milestone. On February 12, 2026, we successfully completed the Avadel Acquisition, adding both LUMRYZ to our portfolio of proprietary commercial products and a commercial organization with experience in narcolepsy. During the three months ended December 31, 2025, we incurred costs of approximately $10.0 million in connection with the Avadel Acquisition.

In May 2024, we completed the sale of the Athlone Facility to Novo and entered into subcontracting arrangements to continue certain development and manufacturing activities performed at the Athlone Facility, which concluded by the end of 2025.

63

Results of Operations

Product Sales, Net

Our product sales, net, consisted of sales of ARISTADA, ARISTADA INITIO, LYBALVI and VIVITROL, primarily to wholesalers, specialty distributors and pharmacies. The following table presents the adjustments deducted from product sales, gross to arrive at product sales, net, for sales of these products during the years ended December 31, 2025 and 2024:

[[GREPCENT_TABLE]]
[["","Year Ended December 31,"],["(In millions, except for % of Sales)","2025","","","% of Sales","","","","2024","","","% of Sales"],["Product sales, gross","$","2,212.5","","","","100.0","","%","","$","2,119.5","","","","100.0","","%"],["Adjustments to product sales, gross:"],["Medicaid rebates","","(421.8",")","","","(19.1",")","%","","","(454.0",")","","","(21.4",")","%"],["Chargebacks","","(254.3",")","","","(11.5",")","%","","","(231.5",")","","","(10.9",")","%"],["Product discounts","","(166.2",")","","","(7.5",")","%","","","(155.1",")","","","(7.3",")","%"],["Medicare Part D","","(79.5",")","","","(3.5",")","%","","","(83.0",")","","","(3.9",")","%"],["Other","","(106.1",")","","","(4.8",")","%","","","(112.4",")","","","(5.4",")","%"],["Total adjustments","","(1,027.9",")","","","(46.4",")","%","","","(1,036.0",")","","","(48.9",")","%"],["Product sales, net","$","1,184.6","","","","53.6","","%","","$","1,083.5","","","","51.1","","%"]]
[[/GREPCENT_TABLE]]

The increase in product sales, gross was due to a 19% increase in the number of units sold for LYBALVI and a 3% price increase for each of LYBALVI, ARISTADA/ARISTADA INITIO and VIVITROL that went into effect in January 2025, partially offset by decreases of 3% and 2% in the number of units sold for VIVITROL and ARISTADA/ARISTADA INITIO, respectively.

The decrease in Medicaid rebates as a percentage of sales was primarily due to gross-to-net favorability, as actual Medicaid rebates related to VIVITROL and ARISTADA/ARISTADA INITIO were lower than original estimates by approximately $26.7 million and $13.6 million, respectively.

The following table compares product sales, net earned during the years ended December 31, 2025 and 2024:

[[GREPCENT_TABLE]]
[["","Year Ended December 31,"],["(In millions)","2025","","","2024","","","Change"],["VIVITROL","$","467.9","","","$","457.3","","","$","10.6"],["ARISTADA and ARISTADA INITIO","","370.0","","","","346.2","","","","23.8"],["LYBALVI","","346.7","","","","280.0","","","","66.7"],["Product sales, net","$","1,184.6","","","$","1,083.5","","","$","101.1"]]
[[/GREPCENT_TABLE]]

A number of companies currently market and/or are developing products to treat addiction, including alcohol and opioid dependence, that may compete with, and negatively impact, future sales of VIVITROL. In addition, the latest to expire of our patents covering VIVITROL will expire in 2029 in the U.S. and we expect generic versions of VIVITROL to enter the market in 2027. Pursuant to the terms of a confidential settlement and license agreement entered into in August 2023 with Teva, we granted Teva a non-exclusive, royalty-free, non-transferable, non-sublicensable limited license under the remaining patent covering VIVITROL to market and sell a generic version of VIVITROL in the U.S. beginning on the First Entry Date, or earlier under certain circumstances. Under the terms of a settlement and license agreement entered into in July 2019 with Amneal, we granted Amneal a non-exclusive license under certain patents covering VIVITROL, including the remaining patent covering VIVITROL in the U.S., to market and sell a generic formulation of VIVITROL in the U.S. beginning on the earlier of the First Entry Date, sometime in 2028 or earlier under certain circumstances, and in September 2025, entered into an authorized generic product supply agreement (the “AG Agreement”) with Amneal, pursuant to which we granted Amneal certain rights to distribute and sell in the U.S. an authorized generic version of VIVITROL for a one-year term beginning on the date of a Third Party ANDA Product Launch (as defined in the AG Agreement), subject to certain conditions set forth in the AG Agreement. Increased competition may lead to reduced unit sales of VIVITROL and increased pricing pressure.

A number of companies currently market and/or are developing products to treat schizophrenia and/or bipolar I disorder that may compete with and negatively impact future sales of ARISTADA, ARISTADA INITIO and LYBALVI. Increased competition may lead to reduced unit sales of ARISTADA, ARISTADA INITIO and LYBALVI and increased pricing pressure. The latest to expire of our patents covering ARISTADA and ARISTADA INITIO in the U.S. will expire in 2039; and, as such, we do not anticipate any generic versions of these products to enter the market in the near term. The latest to expire of our patents covering LYBALVI in the U.S. will expire in 2041. We are currently engaged in Paragraph IV litigation with certain entities in respect of certain of the Company’s patents related to LYBALVI with expiration dates between 2032 and 2041. For a discussion of these legal proceedings, see Note 19, Commitments and Contingent Liabilities in the “Notes to Consolidated Financial Statements” in this Annual Report and for information regarding the risks relating to these legal proceedings, see “Risks Related to our Intellectual Property—Uncertainty

64

over IP in the biopharmaceutical industry has been the source of litigation and other legal proceedings, and we and our licensees have previously and may in the future face claims against IP rights covering our products and competition from generic drug manufacturers”.

Manufacturing and Royalty Revenues

Substantially all of our manufacturing revenue was recognized at the point in time that the product has been fully manufactured. Royalties earned on our licensees’ net sales of products using our proprietary technologies and our licensed product were recognized in the period such products were sold by our licensees. The following table compares manufacturing and royalty revenues earned in the years ended December 31, 2025 and 2024:

[[GREPCENT_TABLE]]
[["","Year Ended December 31,"],["(In millions)","2025","","","2024","","","Change"],["Manufacturing and royalty revenues:"],["Long-acting INVEGA products","$","109.6","","","$","236.5","","","$","(126.9",")"],["VUMERITY","","130.5","","","","134.0","","","","(3.5",")"],["RISPERDAL CONSTA","","19.6","","","","23.5","","","","(3.9",")"],["Other","","31.6","","","","80.1","","","","(48.5",")"],["Manufacturing and royalty revenues","$","291.3","","","$","474.1","","","$","(182.8",")"]]
[[/GREPCENT_TABLE]]

The decrease in royalty revenues related to the long-acting INVEGA products was primarily due to the expiration of our royalty on net sales of INVEGA SUSTENNA in the U.S. in August 2024. Although we expect royalty revenues related to U.S. net sales of INVEGA TRINZA and INVEGA HAFYERA through certain specified dates in 2030, total royalty revenues from net sales of the long-acting INVEGA products have been, and we expect will continue to be lower as the royalty revenues related to U.S. net sales of INVEGA SUSTENNA comprised a significant portion of the overall royalty revenues from the long-acting INVEGA products. In addition, INVEGA SUSTENNA is currently subject to Paragraph IV litigation in response to companies seeking to market generic versions of such product. Though we no longer receive royalties from INVEGA SUSTENNA in the U.S., increased competition from new products or generic versions of any one or more of the long-acting INVEGA products may lead to reduced unit sales of all of the long-acting INVEGA products, including those not yet genericized, and increased pricing pressure.

For additional discussion of our agreements with Janssen related to the long-acting INVEGA products, including the royalty provisions set forth therein and the related completed arbitration proceedings and outcome, see the section entitled “Collaborative Arrangements—Janssen” in “Item 1—Business” in this Annual Report.

The decrease in VUMERITY revenue was due to a $22.8 million decrease in manufacturing revenue, primarily due to a reduction in the number of batches manufactured for sale to Biogen, partially offset by a $19.2 million increase in royalty revenue, due to an increase in end-market sales of the product. For a discussion of our agreements with Biogen related to VUMERITY, including the manufacturing and royalty revenue

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/ALKS/mda/fy2025/
All MD&A years: /company/ALKS/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/ALKS/mda/fy2024/): filed 2025-02-12; accession 0000950170-25-019011 (https://www.sec.gov/Archives/edgar/data/1520262/000095017025019011/alks-20241231.htm)
- [FY 2023 MD&A](/company/ALKS/mda/fy2023/): filed 2024-02-21; accession 0000950170-24-017883 (https://www.sec.gov/Archives/edgar/data/1520262/000095017024017883/alks-20231231.htm)
- [FY 2022 MD&A](/company/ALKS/mda/fy2022/): filed 2023-02-16; accession 0001564590-23-002020 (https://www.sec.gov/Archives/edgar/data/1520262/000156459023002020/alks-10k_20221231.htm)
- [FY 2021 MD&A](/company/ALKS/mda/fy2021/): filed 2022-02-16; accession 0001564590-22-005304 (https://www.sec.gov/Archives/edgar/data/1520262/000156459022005304/alks-10k_20211231.htm)


## FDA-approved drug applications

Applications listed under this company's exact-matched sponsor name. Approved applications only.

| FDA-listed trade name | Active ingredient | Application | Original approval |
| --- | --- | --- | --- |
| LYBALVI | OLANZAPINE; SAMIDORPHAN L-MALATE | [NDA213378](/drug/nda-213378/) | 2021-05-28 |
| ARISTADA INITIO KIT | ARIPIPRAZOLE LAUROXIL | [NDA209830](/drug/nda-209830/) | 2018-06-29 |
| ARISTADA | ARIPIPRAZOLE LAUROXIL | [NDA207533](/drug/nda-207533/) | 2015-10-05 |
| VIVITROL | NALTREXONE | [NDA021897](/drug/nda-021897/) | 2006-04-13 |

Sponsor as listed in Drugs@FDA at retrieval (2026-08-07); FDA sponsor listings can lag ownership transfers.

This list covers FDA applications whose listed sponsor name maps to this company by an exact-unique match; applications listed under sponsor names not mapped to this company (subsidiaries, name variants, joint ventures) are absent.


## Macro cross-references

Indicators mapped to this company's SIC classification (industry 2834 Pharmaceutical Preparations) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/ALKS.md · JSON record: /company/ALKS.json · verified financials: /company/ALKS/financials.json / /company/ALKS/financials.csv · machine TOC for the whole site: /llms.txt