Alkermes plc. Revenue Disclosure
3. REVENUE FROM CONTRACTS WITH CUSTOMERS
During the years ended December 31, 2025, 2024 and 2023, the Company recorded product sales, net, as follows:
|
Year Ended December 31, |
|
|||||||||
(In thousands) |
2025 |
|
|
2024 |
|
|
2023 |
|
|||
VIVITROL |
$ |
467,912 |
|
|
$ |
457,315 |
|
|
$ |
400,419 |
|
ARISTADA and ARISTADA INITIO |
|
370,044 |
|
|
|
346,187 |
|
|
|
327,690 |
|
LYBALVI |
|
346,687 |
|
|
|
280,032 |
|
|
|
191,889 |
|
Total product sales, net |
$ |
1,184,643 |
|
|
$ |
1,083,534 |
|
|
$ |
919,998 |
|
During the years ended December 31, 2025, 2024 and 2023, the Company recorded manufacturing and royalty revenues from its collaboration arrangements as follows:
|
|
Year Ended December 31, 2025 |
|
|||||||||
(In thousands) |
|
Manufacturing |
|
|
Royalty |
|
|
Total |
|
|||
Long-acting INVEGA products(1) |
|
$ |
— |
|
|
$ |
109,572 |
|
|
$ |
109,572 |
|
VUMERITY |
|
|
16,539 |
|
|
|
113,929 |
|
|
|
130,468 |
|
RISPERDAL CONSTA |
|
|
19,569 |
|
|
|
55 |
|
|
|
19,624 |
|
Other |
|
|
9,887 |
|
|
|
21,705 |
|
|
|
31,592 |
|
|
|
$ |
45,995 |
|
|
$ |
245,261 |
|
|
$ |
291,256 |
|
|
|
Year Ended December 31, 2024 |
|
|||||||||
(In thousands) |
|
Manufacturing |
|
|
Royalty |
|
|
Total |
|
|||
Long-acting INVEGA products(1) |
|
$ |
— |
|
|
$ |
236,386 |
|
|
$ |
236,386 |
|
VUMERITY |
|
|
39,292 |
|
|
|
94,755 |
|
|
|
134,047 |
|
RISPERDAL CONSTA |
|
|
23,172 |
|
|
|
272 |
|
|
|
23,444 |
|
Other |
|
|
56,962 |
|
|
|
23,256 |
|
|
|
80,218 |
|
|
|
$ |
119,426 |
|
|
$ |
354,669 |
|
|
$ |
474,095 |
|
|
|
Year Ended December 31, 2023 |
|
|||||||||
(In thousands) |
|
Manufacturing Revenue |
|
|
Royalty Revenue |
|
|
Total |
|
|||
Long-acting INVEGA products(1) |
|
$ |
— |
|
|
$ |
486,101 |
|
|
$ |
486,101 |
|
VUMERITY |
|
|
42,886 |
|
|
|
86,440 |
|
|
|
129,326 |
|
RISPERDAL CONSTA |
|
|
36,123 |
|
|
|
1,153 |
|
|
|
37,276 |
|
Other |
|
|
63,489 |
|
|
|
27,196 |
|
|
|
90,685 |
|
|
|
$ |
142,498 |
|
|
$ |
600,890 |
|
|
$ |
743,388 |
|
In November 2021, the Company received notice of partial termination of an exclusive license agreement with Janssen. Under this license agreement, the Company provided Janssen with rights to, and know-how, training and technical assistance in respect of, the Company’s small particle pharmaceutical compound technology, known as NANOCRYSTAL technology, which was used to develop the long-acting INVEGA products. When the partial termination became effective in February 2022, Janssen ceased paying royalties related to sales of INVEGA SUSTENNA, INVEGA TRINZA and INVEGA HAFYERA. Accordingly, the Company ceased recognizing royalty revenue related to sales of these products in February 2022. In April 2022, the Company commenced binding arbitration proceedings related to, among other things, Janssen’s partial termination of this license agreement and Janssen’s royalty and other obligations under the agreement. In May 2023, the arbitral tribunal (the “Tribunal”) in the arbitration proceedings issued a final award (the “Final Award”) which concluded the arbitration proceedings. The Final Award provided, among other things, that the Company was due back royalties of $195.4 million, inclusive of $8.1 million in late-payment interest related to 2022 U.S. net sales of the long-acting INVEGA products, which amount the Company received from Janssen in the second quarter of 2023, and is entitled to 2023 and future royalty revenues from Janssen related to net sales of INVEGA SUSTENNA through August 20, 2024, INVEGA TRINZA through the second quarter of 2030 (but no later than May 2030 when the license agreement expires) and INVEGA HAFYERA through May 2030 (when the license agreement expires).
Following issuance of the Final Award, the Company recognized royalty revenues related to the back royalties noted above and resumed recognizing royalty revenue related to ongoing U.S. sales of the long-acting INVEGA products. During 2023, the Company recorded $486.1 million in royalty revenue from sales of the long-acting INVEGA products, including $195.4 million in back royalties and associated interest related to net sales of the long-acting INVEGA in the U.S. in 2022, and approximately $290.7 million related to resumed recognition of royalty revenue related to worldwide net sales of the long-acting INVEGA products.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 12, 2025 | |
| 2023 | Feb 21, 2024 | |
| 2022 | Feb 16, 2023 | |
| 2021 | Feb 16, 2022 | |
| 2020 | Feb 11, 2021 | |
| 2019 | Feb 13, 2020 | |
| 2018 | Feb 15, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.