Alkermes Price Target Raised to $50 After Q1 Revenue Beat and $80.3M EBITDA
Needham boosted its Alkermes price target to $50 from $45 after Q1 revenues of $392.91M beat forecasts by 9.5% and adjusted EBITDA reached $80.3M. Proprietary product sales of $338.1M, including $39.5M from LUMRYZ, support full-year guidance of $1.73–$1.84B.
1. Analyst Price Target Increase
Needham maintained a Buy rating on Alkermes and raised its price target to $50 from $45, citing strong first-quarter performance and the Avadel acquisition as key drivers of future growth.
2. Q1 Financial Highlights
Alkermes reported Q1 revenues of $392.91 million, surpassing estimates by 9.5%, and delivered adjusted EBITDA of $80.3 million, marking the fourth consecutive quarter of beating consensus despite a $0.40 per share loss.
3. Product Sales and Strategic Shift
Proprietary product sales climbed to $338.1 million in Q1, with the newly integrated sleep medicine drug LUMRYZ contributing $39.5 million, highlighting the success of its transition into neuroscience and sleep medicine.
4. Updated Full-Year Guidance
Management projects 2026 revenues between $1.73 billion and $1.84 billion, with four commercial products each expected to generate over $300 million in annual net sales, reflecting enhanced operational efficiency and product momentum.