Alkermes' (ALKS) base business supported the company's Q2 beat, while its orexin pipeline serves as a potential catalyst for future revenue growth, RBC Capital Markets said in a Tuesday note.
The company reported a breakeven in Q2, compared with earnings of $0.52 per share a year earlier, and revenue of $496 million, up from $390.7 million. For 2026, Alkermes reiterated its total revenue guidance of $1.73 billion to $1.84 billion.
Alkermes' core business drove the quarter's revenue beat, with recent highlights like less generic threat for Vivitrol and expanded access for Lybalvi, RBC said. The quarter also said one-time benefits from patient mix favorability, Lumryz inventory and Consta manufacturing, the brokerage added.
Looking forward, investor focus is shifting to the company's orexin pipeline expansion into other indications, which could help pave the way for Alkermes's revenue to exceed $5 billion, RBC noted.
RBC has an outperform rating and $56 price target on Alkermes.
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