Alkermes Q1 2025: Key Contradictions in Orexin Safety, LYBALVI Sales, and VIVITROL Funding

Orexin study safety and visual disturbances, LYBALVI sales force expansion and market dynamics, VIVITROL funding sources and Medicaid impact, Orexin dosing and indication coverage, alcohol and sustained release naltrexone (VIVITROL) are the key contradictions discussed in Alkermes' latest 2025Q1 earnings call.



Commercial Performance:
- Alkermes recorded net sales from its proprietary product portfolio of $244.5 million in Q1 2025, exceeding expectations and representing a 5% year-over-year growth.
- Growth was primarily driven by LYBALVI, which showed a 23% increase in net sales year-over-year.
- The focus on maintaining a competitive share of voice for LYBALVI and reaccelerating growth for ARISTADA contributed to this performance.

Financial Positioning and Macroeconomic Conditions:
- Alkermes ended Q1 with $916.2 million in cash and total investments, supporting its strategic objectives amidst dynamic macroeconomic conditions.
- The company is paying attention to Medicaid changes and FDA regulations, with a focus on maintaining access to care for patient populations.
- The manufacturing footprint in the U.S. and minimal exposure to foreign supply chains provide a strong position against potential tariffs and foreign reference pricing.

R&D and Orexin Development:
- The ALKS 2680 Phase 2 program in central disorders of hypersomnolence is advancing with strong momentum, with completion of enrollment in the Vibrance-1 study for NT1 and expected completion mid-year for NT2.
- Data from these studies is expected to be substantial and pivotal in the therapeutic category, with top-line results anticipated early in Q3 for NT1 and later in the year for NT2.
- The focus on multiple doses and a broad range of doses is part of the strategy to inform Phase 3 program planning and regulatory interactions.

Strategic M&A and Business Development:
- Alkermes is open to bringing in additional assets to bolster its neuroscience pipeline, considering Phase 1 through mid-stage development opportunities.
- While not specifying the size of potential transactions, the company aims to maintain profitability and potential opportunities that match its strategy and development capabilities.