Alkermes plc

Valuation Analysis

About the Company

Alkermes plc, a biopharmaceutical company, engages in the research, development, and commercialization of pharmaceutical products to address unmet medical needs of patients in therapeutic areas in the United States, Ireland, and internationally. The company has a portfolio of proprietary commercial products for the treatment of opioid dependence, alcohol dependence, schizophrenia, bipolar I, and a pipeline of clinical and preclinical product candidates in development for neurological disorders. Its marketed products include ARISTADA, an intramuscular injectable suspension for the treatment of schizophrenia; ARISTADA INITIO for the treatment of schizophrenia in adults; VIVITROL for the treatment of alcohol and prevention of opioid dependence; LYBALVI, an oral atypical antipsychotic drug can

Alkermes plc Stock at a Glance

Alkermes plc (ALKS) is currently trading at $44.28 with a market capitalization of $7.4B. The trailing P/E ratio stands at 49.2x, with a forward P/E of 18.8x. The 52-week range spans from $25.17 to $45.76; the current price is 3.2% below the yearly high. Year-over-year revenue growth stands at +28.2%. The net profit margin stands at 9.77%.

💰 Dividend

Alkermes plc currently does not pay a dividend. The company typically reinvests its earnings into growth initiatives and product development.

📊 Analyst Rating

16 analysts rate Alkermes plc (ALKS) on consensus: Buy. The average price target is $46.12, implying +4.17% from the current price. Analyst price targets range from $34.00 to $59.00.

Alkermes plc: The Investment Case in Detail

Alkermes plc (ALKS) operates in the Healthcare — specifically Drug Manufacturers - Specialty & Generic — and is headquartered in Ireland. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Top-line momentum is unusually strong with revenue expanding 28.2% year-over-year, a pace that puts the company well above the market average and signals genuine demand traction rather than mere cyclical tailwind. With a gross margin near 87.45%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns.

The Bear Case

Short interest sits at 14.47% of float — a meaningful contingent of professionals is positioned for the share to fall, which deserves attention even if their thesis may turn out to be wrong. Our valuation screen flags the stock as overvalued — current multiples imply the business needs to deliver well above its recent trajectory to justify the price.

Valuation in Context

The EV/EBITDA multiple of 30.33x reflects rich expectations — historically, multiples at this level have proven hard to maintain for more than a few quarters.

What to Watch Next

• The forward P/E of 18.8x is meaningfully below the trailing 49.2x — analysts expect earnings to step up; the next earnings release is the test.
• The share is trading at 92.8% of its 52-week range — a break above the recent high opens technical upside, a failure here often invites profit-taking.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (14.47%).

Trading Data

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