Why Is Alkermes (ALKS) Up 4.7% Since Last Earnings Report?

Core Viewpoint - Alkermes reported a strong second quarter for 2025, with earnings and proprietary product sales exceeding expectations, despite a slight decline in total revenues compared to the previous year [2][3][5]. Financial Performance - Alkermes reported earnings from continuing operations of 52 cents per share, beating the Zacks Consensus Estimate of 41 cents and slightly lower than 53 cents per share from the year-ago quarter [2]. - Total revenues for the second quarter were $390.7 million, a decrease of 2.1% year over year, but significantly above the Zacks Consensus Estimate of $339 million [3]. - Sales from proprietary products grew 14% year over year to $307.2 million, surpassing management's expectations of $260-$280 million [5]. Product Sales Breakdown - Vivitrol sales increased 9% year over year to $121.7 million, exceeding the Zacks Consensus Estimate of $111 million [6]. - Aristada sales rose 18% year over year to $101.3 million, beating the Zacks Consensus Estimate of $84 million [6]. - Lybalvi generated sales of $84.3 million, up 18% year over year, also surpassing the Zacks Consensus Estimate of $79 million [7]. Revenue Sources - Alkermes' revenue sources include net sales from proprietary products and manufacturing/royalty revenues from partnered products [4]. - Manufacturing and royalty revenues decreased 35.8% year over year to $83.4 million, with specific contributions from Biogen's Vumerity and other products [7][8]. Expenses and Cash Position - Research and development expenses increased by almost 30% year over year to $77.4 million, driven by ongoing studies on pipeline candidate alixorexton [8]. - As of June 30, 2025, Alkermes had cash and cash equivalents of $1.05 billion, up from $916.2 million as of March 31, 2025 [9]. Guidance and Estimates - Alkermes reiterated its financial guidance for 2025, expecting total revenues of $1.34-$1.43 billion [10]. - The company anticipates net sales of Vivitrol to be $440-$460 million, Aristada sales to be $335-$355 million, and Lybalvi's net sales to be in the range of $320-$340 million [11]. Market Position and Trends - Estimates for Alkermes have trended downward recently, with a consensus estimate shift of -14.21% [12]. - Alkermes holds a Zacks Rank 3 (Hold), indicating an expectation of in-line returns in the coming months [14].