Short answer
Alkermes plc. (ALKS) filed its fiscal 2025 10-K annual report with the SEC on Feb 25, 2026. It reported revenue of $1.5B (−5.2% year over year) and net income of $242M.
- Top risk flagged: Regulatory risk: potential increased tax liability of ~$70M on $965.7M in cumulative unremitted U.S. earnings upon repatriation subject to foreign tax credits and withholding
FY2025 key financial metrics · XBRL
- Revenue
- $1.5B
- −5.2% YoY
- Net income
- $242M
- −34.2% YoY
- Operating margin
- 17.2%
- −9.8 pp YoY
- EPS (diluted)
- $1.43
- −34.1% YoY
- ROE
- 13.3%
- −11.8 pp YoY
- Operating cash flow
- $521M
- +18.6% YoY
Source: XBRL data from the Alkermes plc. (ALKS) FY2025 10-K on SEC EDGAR. USD.
Alkermes plc. FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business model: Pharmaceutical development and licensing for specialty medicines, with substantial collaboration and royalty revenues from partners Janssen and Biogen
- Strategic shift: Sale of Athlone manufacturing facility in May 2024 and transition of VUMERITY manufacturing to Biogen's subcontractor completed August 2025
- Notable litigation: Multiple patent infringement lawsuits filed in 2025 against generic challengers to LYBALVI, triggering FDA approval stays via Hatch-Waxman Act
- R&D expenses increased sharply to $324M in 2025 from $245M in 2024, driven largely by development of Alixorexton
- Unique tax impact: First full year affected by new EU minimum corporate tax of 15% effective January 1, 2024, with no material effect reported on 2025 taxes
Management Discussion & Analysis
- Revenue product sales, net $1,184.6M up $101.1M YoY from $1,083.5M, driven by LYBALVI (+$66.7M) and ARISTADA (+$23.8M) growth
- Manufacturing and royalty revenues declined $182.8M to $291.3M, mainly from long-acting INVEGA products down $126.9M
- Net income $241.7M vs $372.1M, due to $84.9M expense increase and $182.8M lower manufacturing/royalty revenues
- Operating margin not specified; product sales gross margin impacted by $1,027.9M gross-to-net adjustments (46.4% of gross sales)
- Cash use: $10M acquisition costs for Avadel adding LUMRYZ product; no capex, buyback, or dividend details disclosed
- Risks: generic VIVITROL entry in 2027, patent litigation for LYBALVI, competitive pressure on core products; expanded commercial portfolio post Avadel acquisition with LUMRYZ
Risk Factors
- Regulatory risk: potential increased tax liability of ~$70M on $965.7M in cumulative unremitted U.S. earnings upon repatriation subject to foreign tax credits and withholding
- Macroeconomic threat: $1.525B senior secured term loans due 2031 with interest margins of 1.75%-2.75% increase financing costs and leverage post-Avadel Acquisition
- Supply chain vulnerability: $43.7M decrease in cost of goods sold due to Athlone Facility sale in May 2024, impacting legacy product manufacturing capacity
- Competitive risk: product sales dependent on ARISTADA, LYBALVI, VIVITROL with Medicaid rebates and chargebacks impacting gross-to-net adjustments by $316M at 2025 year-end
- Financial risk: 17.1% effective tax rate in 2025 exceeding 12.5% Irish statutory rate driven by nondeductible expenses and higher-taxable income segments impacting net margins
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