Alkermes (ALKS) Is Up 7.1% After Analyst Upgrades and Promising Sleep Disorder Data Release – Has The Bull Case Changed?

• In the third quarter of 2025, Alkermes reported revenue of US$394.19 million and net income of US$82.76 million, alongside updates on its share repurchase program and clinical progress in sleep disorder treatments.
• An interesting insight is that analyst upgrades and promising Phase 2a data for Alkermes' orexin agonist pipeline have contributed to heightened investor optimism, especially following favorable comparisons to competitors' clinical data.
• We'll examine how analyst enthusiasm over Alkermes' latest clinical advancements and competitive positioning could shape the company's investment narrative.

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Alkermes Investment Narrative Recap

To be a shareholder in Alkermes, you need confidence in the company’s ability to turn clinical advances and a focused pipeline into sustained revenue growth, despite fluctuations in profitability and heavy investments in R&D. The latest earnings report confirms continued revenue growth alongside declining net income and profit margins, which does not materially impact the biggest near-term catalyst, positive late-stage data for its orexin agonist pipeline, or the most pressing risk: rising R&D costs that may not translate into commercial success if late-stage trials disappoint.

One of the most relevant announcements is Alkermes’ update on its share buyback program. The company reported no new share repurchases in the most recent quarter, leaving its previously announced buyback unchanged. This lack of recent activity is largely neutral for the near-term stock catalyst and does not directly affect underlying concerns about increased research spending or product risk. Although optimism persists, investors should be mindful that if rising expenses from the expanding orexin pipeline are not offset by successful trial outcomes or market launches...

Read the full narrative on Alkermes (it's free!)

Alkermes' outlook anticipates $1.4 billion in revenue and $169.0 million in earnings by 2028. This reflects a 1.3% annual revenue decline and a $179.1 million decrease in earnings from the current $348.1 million.

Uncover how Alkermes' forecasts yield a $44.00 fair value, a 34% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members see Alkermes’ fair value between US$44 and US$94.80, with four perspectives represented. While the broadest estimate points to possible upside, cautious investors are watching whether increased R&D costs deliver the needed late-stage clinical wins.

Explore 4 other fair value estimates on Alkermes - why the stock might be worth just $44.00!

Build Your Own Alkermes Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Alkermes research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Alkermes research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Alkermes' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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