Financial Analysis

3. BUSINESS COMBINATION Acquisition of Avadel Pharmaceuticals plc On February 12, 2026 (the Closing Date), the Company completed the acquisition of Avadel Pharmaceuticals plc (now operating as Avadel Pharmaceuticals Limited) (Avadel), pursuant to the definitive transaction agreement entered into in October 2025 and subsequently amended in November 2025 (the Transaction Agreement), adding both LUMRYZ to the Companys portfolio of proprietary commercial products and a commercial organization with experience in narcolepsy. Pursuant to the Transaction Agreement, the Company acquired the entire issued and to be issued ordinary share capital of Avadel (the Avadel Acquisition) for consideration of (i) $ 21.00 per ordinary share, nominal value $ 0.01 per share, of Avadel (each, an Avadel Share), payable in cash at closing and (ii) a non-transferable contingent value right (the CVR) entitling holders of Avadel Shares to a potential additional cash payment of $ 1.50 per Avadel Share, contingent upon achievement of a certain specified milestone (the CVR Milestone). The Avadel Acquisition has been accounted for as a business combination, using the acquisition method of accounting in accordance with Topic 805. The acquisition method requires, among other things, that assets acquired and liabilities assumed in a business combination be recognized at their fair values as of the acquisition date. The Companys purchase price allocation is preliminary and based on the information available as o …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

18. COMMITMENTS AND CONTINGENT LIABILITIES Contingent Consideration At June 30, 2026, the Companys contingent consideration related to the CVR Milestone issued as part of consideration for the Avadel Acquisition. Holders of Avadel Shares as of the Closing Date are entitled to receive a potential aggregate cash payment of $ 165.7 million, or $ 1.50 per Avadel Share, upon achievement of the CVR Milestone. For additional information related to the contingent consideration, see Note 3, Business Combination, and for information related to the change in the fair value of the contingent consideration, see Note 6, Fair Value in these Notes to Condensed Consolidated Financial Statements. Litigation From time to time, the Company may be subject to legal proceedings and claims in the ordinary course of business. On a quarterly basis, the Company reviews the status of each significant matter and assesses its potential financial exposure. If the potential loss from any claim, asserted or unasserted, or legal proceeding is considered probable and the amount can be reasonably estimated, the Company would accrue a liability for the estimated loss. Because of uncertainties related to claims and litigation, accruals are based on the Companys best estimates, utilizing all available information. On a periodic basis, as additional information becomes available, or based on specific events such as the outcome of litigation or settlement of claims, the Company may reassess the potential liability r …

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14. SHARE-BASED COMPENSATION The following table presents share-based compensation expense included in the accompanying condensed consolidated statements of operations and comprehensive (loss) income: Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2026 2025 2026 2025 Cost of goods manufactured and sold $ 1,932 $ 1,479 $ 3,685 $ 3,261 Research and development 8,219 6,510 16,687 12,401 Selling, general and administrative 20,988 16,977 47,097 32,114 Share-based compensation expense 31,139 24,966 67,469 47,776 Research and development 5,940 Selling, general and administrative 12,468 Share-based compensation expense for acceleration of Avadel Shares 18,408 Total share-based compensation expense $ 31,139 $ 24,966 $ 85,877 $ 47,776 At June 30, 2026 and December 31, 2025 , $ 3.3 million and $ 3.2 million, respectively, of share-based compensation expense was capitalized and recorded as Inventory, and $ 2.5 million and $ 1.6 million, respectively, of share-based compensation expense was capitalized and recorded as Other assets in the accompanying condensed consolidated balance sheets. During the three and six months ended June 30, 2026, share-based compensation expense included: $ 0.4 million and $ 2.2 million, respectively, in post-combination expense related to the contingent liability for the potential CVR payment to former Avadel employees; $ 0.3 million and $ 5.2 million, respectively, in expense related to certain equity awards that were modified by the Feb …

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6. FAIR VALUE The following table presents information about the Companys assets and liabilities that are measured at fair value on a recurring basis and indicates the fair value hierarchy and the valuation techniques that the Company utilized to determine such fair value: June 30, (In thousands) 2026 Level 1 Level 2 Level 3 Assets: Cash equivalents $ 15,672 $ 15,672 $ $ U.S. government and agency debt securities 80,543 79,541 1,002 Corporate debt securities 99,414 99,414 Total $ 195,629 $ 95,213 $ 100,416 $ Liabilities: Contingent consideration $ 136,304 136,304 Total $ 136,304 $ $ $ 136,304 December 31, 2025 Level 1 Level 2 Level 3 Assets: Cash equivalents $ 18,583 $ 18,583 $ $ U.S. government and agency debt securities 101,371 94,246 7,125 Corporate debt securities 98,274 97,774 500 Total $ 218,228 $ 112,829 $ 104,899 $ 500 The Company transfers its financial assets and liabilities, measured at fair value on a recurring basis, between the fair value hierarchies at the end of each reporting period. There were no transfers of any securities between levels during the six months ended June 30, 2026. The Companys investments classified as Level 2 within the fair value hierarchy were initially valued at the transaction price and subsequently valued, at the end of each reporting period, utilizing market-observable data. The market-observable data included reportable trades, benchmark yields, credit spreads, broker/dealer quotes, bids, offers, current spot rates and other industry …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

9. GOODWILL AND INTANGIBLE ASSETS Goodwill and intangible assets consist of the following: June 30, 2026 December 31, 2025 (In thousands) Weighted Amortizable Life (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Goodwill $ 594,273 $ $ 594,273 $ 83,027 $ $ 83,027 Definite-lived intangible assets: LUMRYZ 14 $ 1,768,600 $ ( 34,210 ) $ 1,734,390 $ $ $ Capitalized IP 12 1,000 ( 234 ) 766 1,000 ( 185 ) 815 Indefinite-lived intangible asset: IPR&D 26,300 26,300 Total $ 1,795,900 $ ( 34,444 ) $ 1,761,456 $ 1,000 $ ( 185 ) $ 815 Based on its most recent analysis, the Company expects to amortize approximately $ 79.9 million, $ 103.8 million, $ 125.6 million, $ 118.1 million and $ 115.7 million of its definite-lived intangible asset in the years ending December 31, 2026 through 2030, respectively. Although the Company believes such expectations are reasonable, given the inherent risks and uncertainties underlying its expectations regarding future revenues, there is the potential for the Companys actual results to vary significantly from such expectations. If revenues are projected to change, the related amortization of the intangible assets will change in proportion to the change in revenues. In connection with the Avadel Acquisition, the Company recorded the excess of the estimated fair value of the purchase price consideration over the fair value amounts assigned to the assets acquired an …

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16. INCOME TAXES The Company recognizes income taxes under the asset and liability method. Deferred income taxes are recognized for differences between the financial reporting and tax bases of assets and liabilities at enacted statutory tax rates in effect for the years in which the differences are expected to reverse. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. In determining future taxable income, the Company is responsible for assumptions that it utilizes, including the amount of Irish and non-Irish pre-tax operating income, the reversal of temporary differences and the implementation of feasible and prudent tax planning strategies. These assumptions require significant judgment about the forecasts of future taxable income and are consistent with the plans and estimates that the Company uses to manage the underlying business. As of June 30, 2026, the Company has recognized $ 123.0 million of deferred tax assets and, based on all available evidence related to the likelihood of realization of the existing and acquired tax attributes and the weight of the available evidence, believes it is more-likely-than-not that these deferred tax assets will be realized. For a discussion about the deferred tax assets and liabilities acquired in connection with the Avadel Acquisition, see Note 3, Business Combination in these Notes to Condensed Consolidated Financial Statements. The Company recorded an income …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

10. LEASES Future lease payments under non-cancelable leases at June 30, 2026 consist of the following: June 30, (In thousands) 2026 2026 5,782 2027 10,712 2028 10,626 2029 9,826 2030 9,522 Thereafter 41,026 Total operating lease payments $ 87,494 Less: imputed interest ( 18,041 ) Total operating lease liabilities $ 69,453 At June 30, 2026 , the weighted average incremental borrowing rate and the weighted average remaining lease term for all operating leases held by the Company were 3.5 % and 5.3 years, respectively. Cash paid for lease liabilities was $ 2.9 million and $ 5.7 million during the three and six months ended June 30, 2026, respectively, as compared to $ 2.6 million and $ 5.1 million during the three and six months ended June 30, 2025, respectively. The Company recorded operating lease expense of $ 2.2 million and $ 4.4 million during the three and six months ended June 30, 2026, respectively, as compared to $ 1.9 million and $ 3.7 million during the three and six months ended June 30, 2025, respectively. In July 2026, the Company entered into a lease agreement for approximately 9,000 square feet of office space located at Five Park Place, Dublin, Ireland (Five Park Place). The initial term of the lease commences on August 1, 2026 (the Commencement Date) and expires on August 1, 2036 . In accordance with ASC Topic 842, Leases , the future lease payments as of June 30, 2026 outlined above do not include any Five Park Place payments. …

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12. LONG-TERM DEBT Long-term debt consisted of the following: June 30, December 31, (In thousands) 2026 2025 Term Loan A Facility, due February 12, 2031 $ 739,401 $ Term Loan B Facility, due August 12, 2031 763,710 Total 1,503,111 Less: current portion ( 26,500 ) Long-term debt $ 1,476,611 $ On the Closing Date, the Company entered into a credit agreement (the Credit Agreement), by and among Alkermes plc, as the TopCo Borrower, Alkermes, Inc., as the U.S. Borrower, Alkermes Finance LLC, as the U.S. Co-Borrower, JPMorgan Chase Bank, N.A., as Administrative Agent, Joint Lead Arranger and Joint Bookrunner, BofA Securities, Inc., as Joint Lead Arranger and Joint Bookrunner, and the lenders party thereto. The Credit Agreement provides for (i) a senior secured term loan A facility in an aggregate principal amount of up to $ 750.0 million (the TLA Facility) and (ii) a senior secured term loan B facility in an aggregate principal amount of up to $ 775.0 million (the TLB Facility and together with the TLA Facility, the Facilities). The TLA Facility matures on February 12, 2031 , and the TLB Facility matures on August 12, 2031 . On the Closing Date, the Company borrowed the full $ 1.525 billion available under the Facilities. Borrowings under the TLA Facility bear interest at an annual rate of, at the Companys option, either (i) the Term SOFR Rate (as defined in the Credit Agreement) plus a Secured Net Leverage Ratio-(as defined in the Credit Agreement)-based margin, which will initial …

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New Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB or other standard-setting bodies that are adopted by the Company on or prior to the specified effective date. Unless otherwise described in this Form 10-Q, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. In November 2024, the FASB issued Accounting Standards Update (ASU) 2024-03, Income StatementReporting Comprehensive Income-Expense Disaggregation Disclosures , to improve disclosures about a public business entitys expenses and address requests from investors for more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation, amortization and depletion) in commonly-presented expense captions, such as cost of sales, selling, general and administrative expenses, and research and development. All disclosure requirements under this guidance are required for public business entities and effective for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027. Early adoption is permitted and the amendments in this guidance will be applied prospectively to financial statements for periods after the effective dates. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements and related discl …

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4. REVENUE FROM CONTRACTS WITH CUSTOMERS The Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which it expects to receive in exchange for those goods or services. The Company recognizes revenue following the five-step model prescribed in accordance with FASB ASC 606, Revenue from Contracts with Customers : (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies the performance obligations. Product Sales, Net The Companys product sales, net consist of sales in the U.S. of ARISTADA and ARISTADA INITIO, LYBALVI, VIVITROL, and, following the completion of the Avadel Acquisition on February 12, 2026, LUMRYZ, primarily to wholesalers, specialty distributors and specialty pharmacies. Product sales, net are recognized when the customer obtains control of the product, which is when the product has been received by the customer. During the three and six months ended June 30, 2026 and 2025, the Company recorded product sales, net, as follows: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2026 2025 2026 2025 VIVITROL $ 124,454 $ 121,660 $ 236,888 $ 222,656 ARISTADA and ARISTADA INITIO 96,719 101,295 190,543 174,770 LYBALVI 93,979 84,280 186,343 154,302 L …

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17. SEGMENT REPORTING Segment Information The Companys significant segment expenses that are regularly provided to the Companys CODM are as follows: Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2026 2025 2026 2025 REVENUES: Total revenue $ 496,009 $ 390,657 $ 888,920 $ 697,167 EXPENSES: Cost of goods manufactured and sold (exclusive of amortization of acquired intangible assets shown below) 98,112 49,460 159,690 98,657 External R&D expenses: Development programs: Alixorexton 28,797 23,795 54,294 41,649 LYBALVI 4,939 5,050 9,388 8,901 LUMRYZ 4,710 7,633 Other orexin programs 15,090 2,709 21,944 6,178 Other external R&D expenses 13,832 7,880 24,938 15,384 Total external R&D expenses 67,368 39,434 118,197 72,112 Internal R&D expenses: Employee-related 37,013 30,651 80,627 62,005 Occupancy 3,335 3,308 6,599 6,455 Depreciation 1,850 1,474 3,537 2,942 Other internal R&D expenses 3,354 2,503 7,305 5,673 Total internal R&D expenses 45,552 37,936 98,068 77,075 R&D expenses 112,920 77,370 216,265 149,187 Selling, general and administrative expenses: Selling and marketing expense 154,364 121,175 309,276 244,109 General and administrative expense 63,261 49,674 172,942 98,444 Total selling, general and administrative expense 217,625 170,849 482,218 342,553 Other segment (expense) income (1) ( 66,851 ) ( 5,880 ) ( 96,726 ) 2,792 NET (LOSS) INCOME 501 87,098 ( 65,979 ) 109,562 (1) Other segment (expense) income during the three and six mon …

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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying condensed consolidated financial statements of the Company for the three and six months ended June 30, 2026 and 2025 are unaudited and have been prepared on a basis substantially consistent with the audited financial statements for the year ended December 31, 2025. The year-end consolidated balance sheet data, which is presented for comparative purposes, was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the U.S. (commonly referred to as GAAP). In the opinion of management, the condensed consolidated financial statements include all adjustments of a normal recurring nature that are necessary to state fairly the results of operations for the reported periods. The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto of the Company, which are contained in the Annual Report. The results of the Companys operations for any interim period are not necessarily indicative of the results of the Companys operations for any other interim period or for any full fiscal year. Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of Alkermes plc and its wholly-owned subsidiaries as disclosed in Note 2, Summary of Significant Accounting Policies in the Notes to Conso …

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13. SHAREHOLDERS EQUITY In February 2024, the Companys board of directors approved a share repurchase program authorizing the Company to repurchase ordinary shares of the Company in an aggregate amount of up to $ 400.0 million (exclusive of any fees, commissions or other expenses related to such repurchases) from time to time on the open market (the Repurchase Program), with the specific timing and amounts of repurchases under the Repurchase Program dependent on a variety of factors, including but not limited to ongoing assessments of the Companys needs, alternative investment opportunities, the market price of the Companys ordinary shares and general market conditions. The Repurchase Program has no set expiration date and may be suspended or discontinued at any time. During the three months ended March 31, 2026, the Company repurchased approximately 1.0 million of its ordinary shares under the Repurchase Program at an average purchase price of $ 27.82 per share, resulting in a total cost, exclusive of any fees, commissions or other expenses related to such repurchases, of $ 27.7 million. All ordinary shares repurchased were returned to treasury. No shares were repurchased during the three months ended June 30, 2026. As of June 30, 2026, the remaining amount authorized under the Repurchase Program was $ 172.3 million. …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing