Alkermes (ALKS) Morgan Stanley 22nd Annual Global Healthcare Conference summary

Strategic transformation and business focus

• Completed separation of oncology business and sale of Athlone manufacturing facility, establishing a pure-play neuroscience company with a strong, profitable base and focused pipeline.

• Initiated a share repurchase program and achieved a billion-dollar top line, with a clear investment thesis centered on neuroscience and pipeline potential.

• Business model now features narrow outcome variability for the base business and significant upside potential from the pipeline, especially in orexin research.

Orexin program and clinical development

• Advanced ALK-2680 in narcolepsy, with phase II studies underway for NT1 and NT2, showing consistent dose response and good tolerability.

• Clinical trial design includes three doses versus placebo, six-week double-blind period, and open-label extension for dose selection.

• Data presentations at upcoming conferences will highlight NT2 and IH results, with a focus on broad patient inclusion and robust efficacy.

• Plans to expand orexin research beyond sleep, with new clinical candidates targeting both orphan and broader indications; further updates expected in October.

Commercial portfolio and financial outlook

• Proprietary products expected to show flat Q2–Q3 performance with growth in Q4; SG&A expenses front-loaded, declining through year-end.

• Transition in manufacturing and royalty streams due to Athlone sale and Invega Sustenna US royalty expiration, impacting revenue and margins in the back half of the year.

• EBITDA margin projected to dip in Q3 and rebound sharply in Q4 as cost savings and new revenue streams materialize.