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Alkermes plc's First Quarter 2025 Financial Results

Alkermes plc, traded on Nasdaq under the symbol ALKS, has just announced its financial performance for the first quarter of 2025, reporting total revenues of $306.5 million. This figure reflects a decrease compared to the same period in the previous year, where revenues reached $350.4 million. However, the company’s net income for the quarter stands at $22.5 million, translating into diluted earnings per share of $0.13.

Richard Pops, CEO of Alkermes, emphasized that the first quarter results lay a strong foundation to meet the financial guidance set for 2025. He underscored the company’s robust positioning in the current macroeconomic landscape, stressing the importance of strategic execution to enhance Alkermes' future value. One poignant highlight from the report is the progress in the development of ALKS 2680, an investigational oral orexin 2 receptor agonist. The company successfully completed patient enrollment for its first phase 2 study, dubbed Vibrance-1, which focuses on narcolepsy type 1. Topline results from this trial are expected to be available early in the third quarter of the year.

In addition, Alkermes reported significant advancements with the Vibrance-2 and Vibrance-3 studies, which aim to investigate narcolepsy type 2 and idiopathic hypersomnia, respectively. The company anticipates completing enrollment in the Vibrance-2 study by mid-year and obtaining topline data in the fall. These developments reflect a strong momentum in the ALKS 2680 program, with preparations already underway for a phase 3 program. Notably, orexin 2 receptor agonists are poised to revolutionize treatments for central disorders of hypersomnolence, making this a particularly exciting therapeutic avenue for the company.

Financial Highlights

The company’s proprietary net sales for the first quarter amounted to $244.5 million, showing a slight increase from $233.5 million in the same quarter of the previous year. The individual product performance included:

• - VIVITROL®: $101.0 million in revenues, compared to $97.7 million
• - ARISTADA®: $73.5 million, down from $78.9 million
• - LYBALVI®: $70.0 million, up from $57.0 million

Total operating expenses were $292.7 million, which includes $71.8 million in research and development costs and $171.7 million in selling, general, and administrative expenses. This shows slight variations from the previous year, reflecting Alkermes' keen focus on investing in product pipeline advancements and sustaining operations.

The balance sheet at the end of March 2025 showed cash, cash equivalents, and total investments totaling $916.2 million, a healthy increase from $824.8 million reported at the end of December 2024. This liquidity positions Alkermes well to navigate the development and commercialization of its innovative medicines.

Looking Ahead

As Alkermes continues to advance its strategic drug development programs, the company reiterates its financial expectations for 2025, in line with previous communications. This forward-looking approach includes not only the anticipated growth from existing products but also the promising potential of new treatments, such as ALKS 2680.

In conclusion, Alkermes plc's first quarter financial results indicate a resilient performance in a competitive landscape. The emphasis on product development, particularly in the realm of neuroscience, underscores a commitment to innovation in addressing unmet medical needs. As the company continues to drive forth its initiatives, stakeholders may closely monitor the upcoming data releases from ongoing clinical studies that hold the potential for substantial market impact.