21 unchanged sentences
Trading Plans
−Removed: During the three months ended December 31, 2024, no officer (as defined in Rule 16a-1(f) under the Exchange Act) or director of the Company adopted , modified or terminated a contract, instruction or written plan for the purchase or sale of securities of the Company that were intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act or a trading plan not intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act.
+Added: During the three months ended December 31, 2025, the following contracts, instructions or written plans for the purchase or sale of the Company’s securities that are or were intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act (each, a “Rule 10b5-1 plan”) were adopted by officers (as defined in Rule 16a-1(f) under the Exchange Act) and directors of the Company:
+Added: (i) on November 7, 2025 , Samuel Parisi , our Vice President, Finance and Interim Principal Accounting Officer , adopted a Rule 10b5-1 plan providing for the sale of up to 10,055 ordinary shares of the Company that may be obtained from the vesting of restricted stock unit awards;
+Added: this plan is scheduled to expire on December 31, 2026 ;
+Added: (ii) on November 19, 2025 , David Gaffin , our Executive Vice President, Chief Legal Officer, Chief Compliance Officer and Secretary , adopted a Rule 10b5-1 plan providing for the sale of up to 77,518 ordinary shares of the Company that may be obtained from the exercise of vested stock options and the sale of up to 20,341 ordinary shares of the Company;
+Added: this plan is scheduled to expire on February 17, 2027 ;
+Added: (iii) on November 19, 2025 , Blair Jackson , our Executive Vice President, Chief Operating Officer , adopted a Rule 10b5-1 plan providing for the sale of up to 45,899 ordinary shares of the Company that may be obtained from the exercise of vested and expiring stock options;
+Added: this plan is scheduled to expire on February 27, 2026 ;
+Added: (iv) on November 19, 2025 , Christian Todd Nichols , our Senior Vice President, Chief Commercial Officer , adopted a Rule 10b5-1 plan providing for the sale of up to 6,000 ordinary shares of the Company;
+Added: this plan is scheduled to expire on December 31, 2026 ;
+Added: and (v) on November 19, 2025 , Richard Pops , our Chairman and Chief Executive Officer , adopted a Rule 10b5-1 plan providing for the sale of up to 305,999 ordinary shares of the Company that may be obtained from the exercise of vested and expiring stock options;
+Added: this plan is scheduled to expire on February 27, 2026 .
+Added: During the three months ended December 31, 2025, no other directors or officers of the Company adopted or terminated a Rule 10b5-1 plan or a trading plan not intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act.
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
11 unchanged sentences
The information required by this item is incorporated herein by reference to our definitive proxy statement for our 2026 annual general meeting of shareholders.
−Removed: We expect this information will be provided under sections of the proxy statement entitled “Certain Relationships and Related Party Transactions” and “The Board of Directors”.
−Removed: Principal Accou nting Fees and Services
+Added: We expect this information will be provided under sections of the proxy statement entitled “Certain Relationships and Related Person Transactions” and “The Board of Directors”.
+Added: Principal A ccountant Fees and Services
The information required by this item is incorporated herein by reference to our definitive proxy statement for our 2026 annual general meeting of shareholders.
5 unchanged sentences
Consolidated Balance Sheets
−Removed: Consolidated Statements of Operations and Comprehensive Income (Loss)
+Added: Consolidated Statements of Operations and Comprehensive Income
Consolidated Statements of Shareholders’ Equity
6 unchanged sentences
Description of Exhibit
−Removed: Agreement and Plan of Merger, dated November 14, 2019 by and among Alkermes, Inc., Thinker Merger Sub, Inc., Alkermes plc, Rodin Therapeutics, Inc., and Shareholder Representative Services LLC, as Company Equityholder Representative.
+Added: Separation Agreement, dated as of November 13, 2023, by and between Alkermes plc and Mural Oncology plc.
Exhibit 2.1 to the Alkermes plc Current Report on Form 8-K (File No.
November 15, 2023
−Removed: Separation Agreement, dated as of November 13, 2023, by and between Alkermes plc and Mural Oncology plc.
+Added: Transaction Agreement, dated as of October 22, 2025 by and among Alkermes plc and Avadel Pharmaceuticals plc.
Exhibit 2.1 to the Alkermes plc Current Report on Form 8-K (File No.
+Added: October 22, 2025
+Added: Amendment No.
+Added: 1 to the Transaction Agreement, dated as of November 18, 2025, by and between Alkermes plc and Avadel Pharmaceuticals plc.
+Added: Exhibit 2.1 to the Alkermes plc Current Report on Form 8-K (File No.
November 19, 2025
+Added: Appendix III to the Rule 2.7 Announcement, dated as of October 22, 2025 (Conditions Appendix).
+Added: Exhibit 2.2 to the Alkermes plc Current Report on Form 8-K (File No.
+Added: October 22, 2025
Memorandum and Articles of Association of Alkermes plc.
1 unchanged sentence
Description of Securities.
−Removed: Lease between Alkermes, Inc.
−Removed: and PDM Unit 850, LLC, dated as of April 22, 2009.
−Removed: Exhibit 10.5 to the Alkermes, Inc.
−Removed: Annual Report on Form 10-K (File No.
−Removed: First Amendment to Lease between Alkermes, Inc.
−Removed: and PDM Unit 850, LLC, dated as of June 18, 2009.
−Removed: Exhibit 10.2 to the Alkermes, Inc.
−Removed: Quarterly Report on Form 10-Q (File No.
−Removed: August 6, 2009
−Removed: Second Amendment to Lease between Alkermes, Inc.
−Removed: and PDM Unit 850, LLC, dated as of November 12, 2013.
−Removed: Exhibit 10.74 to the Alkermes plc Transition Report on Form 10-KT (File No.
−Removed: February 27, 2014
−Removed: Third Amendment to Lease between Alkermes, Inc.
−Removed: and PDM 850 Unit, LLC, dated as of May 15, 2014.
+Added: Lease, dated March 23, 2018, by and between Alkermes, Inc.
+Added: and PDM 900 Unit, LLC.
Exhibit 10.4 to the Alkermes plc Quarterly Report on Form 10-Q (File No.
−Removed: July 31, 2014
−Removed: Fourth Amendment to Lease between Alkermes, Inc.
−Removed: and GI TC 850 Winter Street, LLC, dated as of December 30, 2014.
+Added: April 26, 2018
+Added: First Amendment to Lease, dated June 21, 2018, by and between Alkermes, Inc.
+Added: and PDM 900 Unit, LLC.
Exhibit 10.2 to the Alkermes plc Quarterly Report on Form 10-Q (File No.
July 26, 2018
−Removed: Fifth Amendment to Lease between Alkermes, Inc.
−Removed: and GI TC 850 Winter Street, LLC, dated as of October 31, 2018.
−Removed: Exhibit 10.1.5 to the Alkermes plc Annual Report on Form 10-K (File No.
−Removed: February 15, 2019
−Removed: Sixth Amendment to Lease between Alkermes, Inc.
−Removed: and GI TC 850 Winter Street, LLC, dated as of July 24, 2020.
+Added: Second Amendment to Lease, dated May 10, 2019, by and between Alkermes, Inc.
+Added: and PDM 900 Unit, LLC.
Exhibit 10.2 to the Alkermes plc Quarterly Report on Form 10-Q (File No.
−Removed: October 29, 2020
−Removed: Incorporated by reference herein
−Removed: Description of Exhibit
+Added: July 25, 2019
License Agreement, dated as of February 13, 1996, between Medisorb Technologies International L.P.
5 unchanged sentences
Third Amendment to Development Agreement, Second Amendment to Manufacturing and Supply Agreement and First Amendment to License Agreements by and between Janssen Pharmaceutica International, Janssen Pharmaceutica Inc.
−Removed: and Alkermes Controlled Therapeutics Inc.
−Removed: II, dated April 1, 2000 (assigned to Alkermes, Inc.
−Removed: in July 2006).
Exhibit 10.5 to the Alkermes, Inc.
1 unchanged sentence
February 8, 2005
+Added: Incorporated by reference herein
+Added: Description of Exhibit
+Added: Alkermes Controlled Therapeutics Inc.
+Added: II, dated April 1, 2000 (assigned to Alkermes, Inc.
+Added: in July 2006).
Second Amendment, dated as of August 16, 2012, to the License Agreement, dated as of February 13, 1996, as amended, by and between Alkermes, Inc.
53 unchanged sentences
October 23, 2018
−Removed: Incorporated by reference herein
−Removed: Description of Exhibit
Agreement by and between JPI Pharmaceutica International, Janssen Pharmaceutica Inc.
12 unchanged sentences
February 8, 2005
+Added: Incorporated by reference herein
+Added: Description of Exhibit
License Agreement by and among Elan Pharmaceutical Research Corp., d/b/a Nanosystems and Elan Pharma International Limited and Janssen Pharmaceutica N.V.
28 unchanged sentences
July 24, 2024
−Removed: Lease, dated March 23, 2018, by and between Alkermes, Inc.
−Removed: and PDM 900 Unit, LLC.
−Removed: Exhibit 10.4 to the Alkermes plc Quarterly Report on Form 10-Q (File No.
−Removed: April 26, 2018
−Removed: First Amendment to Lease, dated June 21, 2018, by and between Alkermes, Inc.
−Removed: and PDM 900 Unit, LLC.
−Removed: Exhibit 10.2 to the Alkermes plc Quarterly Report on Form 10-Q (File No.
−Removed: July 26, 2018
−Removed: Second Amendment to Lease, dated May 10, 2019, by and between Alkermes, Inc.
−Removed: and PDM 900 Unit, LLC.
−Removed: Exhibit 10.2 to the Alkermes plc Quarterly Report on Form 10-Q (File No.
−Removed: July 25, 2019
−Removed: Incorporated by reference herein
−Removed: Description of Exhibit
Confidential Settlement and License Agreement, dated August 29, 2023, by and among Alkermes, Inc., Alkermes Pharma Ireland Limited and Teva Pharmaceuticals USA, Inc.
7 unchanged sentences
February 21, 2024
+Added: Authorized Generic Product Supply Agreement, dated September 9, 2025, by and between Alkermes Pharma Ireland Limited and Amneal Pharmaceuticals LLC.
+Added: Exhibit 10.1 to the Alkermes plc Quarterly Report on Form 10-Q (File No.
+Added: October 28, 2025
+Added: Credit Agreement, dated as of February 12, 2026, by and among Alkermes plc, as the TopCo Borrower, Alkermes, Inc., as the U.S.
+Added: Borrower, Alkermes Finance LLC, as the U.S.
+Added: Co-Borrower, JPMorgan Chase Bank, N.A., as Administrative Agent, Joint Lead Arranger and Joint Bookrunner, BofA
+Added: Exhibit 10.1 to the Alkermes plc Current Report on Form 8-K (File No.
+Added: February 12, 2026
+Added: Incorporated by reference herein
+Added: Description of Exhibit
+Added: Securities, Inc., as Joint Lead Arranger and Joint Bookrunner, and the lenders party thereto.
+Added: Settlement and License Agreement by and between Jazz Pharmaceuticals, Inc.
+Added: and Jazz Pharmaceuticals Ireland Limited and Avadel CNS Pharmaceuticals, LLC and Flamel Ireland Limited.
+Added: Exhibit 10.3 to the Avadel Pharmaceuticals plc Quarterly Report on Form 10-Q (File No.
+Added: November 4, 2025
Employment Agreement, dated as of December 12, 2007, by and between Richard F.
23 unchanged sentences
Form of Employment Agreement entered into by and between Alkermes, Inc.
−Removed: and each of Iain M.
−Removed: Brown, David J.
+Added: and each of David J.
Gaffin, Craig C.
Hopkinson, M.D.
−Removed: and Christian Todd Nichols.
+Added: Christian Todd Nichols and Joshua Reed.
Exhibit 10.1 to the Alkermes plc Quarterly Report on Form 10-Q (File No.
November 2, 2016
−Removed: Offer Letter by and between Alkermes, Inc.
−Removed: Hopkinson M.D., effective as of April 24, 2017.
+Added: Offer Letter, effective as of April 24, 2017, by and between Alkermes, Inc.
+Added: Hopkinson M.D.
Exhibit 10.17.1 to the Alkermes plc Annual Report on Form 10-K (File No.
4 unchanged sentences
July 29, 2020
+Added: Offer Letter, dated August 27, 2025, by and between Alkermes, Inc.
+Added: and Joshua Reed.
+Added: Exhibit 10.3 to the Alkermes plc Quarterly Report on Form 10-Q (File No.
+Added: October 28, 2025
Form of Indemnification Agreement entered into by and between Alkermes, Inc.
12 unchanged sentences
Form of Restricted Stock Unit Award Certificate (Time Vesting Only – Irish) under the Alkermes plc Amended and Restated 2008 Stock Option and Incentive Plan, as amended.
−Removed: Exhibit 10.5 to the Alkermes plc Quarterly Report on Form 10-Q for the quarter ended
+Added: Exhibit 10.5 to the Alkermes plc Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 (File No.
April 28, 2016
1 unchanged sentence
Description of Exhibit
−Removed: March 31, 2016 (File No.
Form of Restricted Stock Unit Award Certificate (Time Vesting Only – U.S.) under the Alkermes plc Amended and Restated 2008 Stock Option and Incentive Plan, as amended.
31 unchanged sentences
Alkermes plc 2018 Stock Option and Incentive Plan, as amended.
−Removed: Exhibit 10.1 to the Alkermes plc Current Report on Form 8-K (File No.
Form of Incentive Stock Option Award Certificate under the Alkermes plc 2018 Stock Option and Incentive Plan, as amended.
7 unchanged sentences
October 23, 2018
−Removed: Incorporated by reference herein
−Removed: Description of Exhibit
Form of Restricted Stock Unit (Performance-Vesting) Award Certificate under the Alkermes plc 2018 Stock Option and Incentive Plan, as amended.
1 unchanged sentence
July 29, 2020
+Added: Incorporated by reference herein
+Added: Description of Exhibit
Form of Non-Qualified Stock Option (Non-Employee Director) Award Certificate under the Alkermes plc 2018 Stock Option and Incentive Plan, as amended.
43 unchanged sentences
Certification Pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934.
−Removed: Incorporated by reference herein
−Removed: Description of Exhibit
Certification Pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934.
1 unchanged sentence
Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
+Added: Incorporated by reference herein
+Added: Description of Exhibit
Alkermes plc Incentive Compensation Recoupment Policy.
9 unchanged sentences
Portions of this exhibit (indicated by “[**]”) have been omitted pursuant to Item 601(b) of Regulation S-K.
−Removed: The Company undertakes to furnish an unredacted copy of this exhibit upon request by the U.S.
−Removed: Securities and Exchange Commission.
+Added: The Company undertakes to furnish an unredacted copy of this exhibit upon request by the SEC.
Schedules and similar attachments to this exhibit have been omitted pursuant to Item 601(a)(5) of Regulation S-K.
−Removed: The Company undertakes to furnish copies of any omitted schedules and similar attachments upon request by the U.S.
−Removed: Securities and Exchange Commission.
+Added: The Company undertakes to furnish copies of any omitted schedules and similar attachments upon request by the SEC.
Form 10-K Summary
6 unchanged sentences
Each person whose signature appears below in so signing also makes, constitutes and appoints Richard F.
−Removed: Pops and Blair C.
−Removed: Jackson, and each of them, his true and lawful attorney-in-fact, with full power of substitution, for him in any and all capacities, to execute and cause to be filed with the Securities and Exchange Commission any and all amendments to this Annual Report, with exhibits thereto and other documents in connection therewith, and hereby ratifies and confirms all that said attorney-in-fact or his substitute or substitutes may do or cause to be done by virtue hereof.
+Added: Pops and Joshua Reed, and each of them, his true and lawful attorney-in-fact, with full power of substitution, for him in any and all capacities, to execute and cause to be filed with the Securities and Exchange Commission any and all amendments to this Annual Report, with exhibits thereto and other documents in connection therewith, and hereby ratifies and confirms all that said attorney-in-fact or his substitute or substitutes may do or cause to be done by virtue hereof.
/s/ Richard F.
1 unchanged sentence
February 25, 2026
−Removed: /s/ B lair C.
−Removed: Executive Vice President, Chief Operating Officer (Interim Principal Financial Officer)
+Added: /s/ J oshua Reed
+Added: Senior Vice President, Chief Financial Officer (Principal Financial Officer)
February 25, 2026
2 unchanged sentences
February 25, 2026
−Removed: /s/ Emily Peterson Alva
−Removed: Emily Peterson Alva
February 25, 2026
−Removed: February 12, 2025
−Removed: February 12, 2025
/s/ Richard B.
13 unchanged sentences
Opinions on the Financial Statements and Internal Control over Financial Reporting
−Removed: We have audited the accompanying consolidated balance sheets of Alkermes plc and its subsidiaries (the “Company”) as of December 31, 2024 and 2023, and the related consolidated statements of operations and comprehensive income (loss), of shareholders’ equity and of cash flows for each of the three years in the period ended December 31, 2024, including the related notes (collectively referred to as the “consolidated financial statements”).
+Added: We have audited the accompanying consolidated balance sheets of Alkermes plc and its subsidiaries (the "Company") as of December 31, 2025 and 2024, and the related consolidated statements of operations and comprehensive income, of shareholders' equity and of cash flows for each of the three years in the period ended December 31, 2025, including the related notes (collectively referred to as the "consolidated financial statements").
We also have audited the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
50 unchanged sentences
Cash and cash equivalents
+Added: Restricted cash
Investments—short-term
2 unchanged sentences
Contract assets
−Removed: Assets held for sale
Total current assets
10 unchanged sentences
Contract liabilities—short-term
−Removed: Current portion of long-term debt
−Removed: Liabilities related to discontinued operations
Total current liabilities
−Removed: LONG-TERM DEBT
OPERATING LEASE LIABILITIES—LONG-TERM
18 unchanged sentences
ALKERMES PLC AND SUBSIDIARIES
−Removed: CONSOLIDATED STATEMENTS OF OPE RATIONS AND COMPREHENSIVE INCOME (LOSS)
+Added: CONSOLIDATED STATEMENTS OF OPE RATIONS AND COMPREHENSIVE INCOME
Years Ended December 31, 2025, 2024 and 2023
3 unchanged sentences
Manufacturing and royalty revenues
−Removed: License revenue
Research and development revenue
6 unchanged sentences
OPERATING INCOME FROM CONTINUING OPERATIONS
−Removed: OTHER INCOME (EXPENSE), NET:
+Added: OTHER INCOME, NET:
Interest income
Interest expense
−Removed: Change in the fair value of contingent consideration
Other income (expense), net
−Removed: Total other income (expense), net
−Removed: INCOME (LOSS) BEFORE INCOME TAXES
+Added: Total other income, net
+Added: INCOME BEFORE INCOME TAXES
INCOME TAX PROVISION (BENEFIT)
−Removed: NET INCOME (LOSS) FROM CONTINUING OPERATIONS
+Added: NET INCOME FROM CONTINUING OPERATIONS
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX
−Removed: NET INCOME (LOSS)
−Removed: EARNINGS (LOSS) PER ORDINARY SHARE:
−Removed: Earnings (loss) per ordinary share from continuing operations - basic
+Added: EARNINGS PER ORDINARY SHARE:
+Added: Earnings per ordinary share from continuing operations - basic
Loss per ordinary share from discontinued operations - basic
−Removed: Earnings (loss) per ordinary share - basic
−Removed: Earnings (loss) per ordinary share from continuing operations - diluted
+Added: Earnings per ordinary share - basic
+Added: Earnings per ordinary share from continuing operations - diluted
Loss per ordinary share from discontinued operations - diluted
−Removed: Earnings (loss) per ordinary share - diluted
+Added: Earnings per ordinary share - diluted
WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES OUTSTANDING:
−Removed: COMPREHENSIVE INCOME (LOSS):
−Removed: Net income (loss)
−Removed: Holding gain (loss), net of a tax provision (benefit) of $ 292 , $ 1,195 and $( 973 ), respectively
−Removed: COMPREHENSIVE INCOME (LOSS)
+Added: COMPREHENSIVE INCOME:
+Added: Holding (loss) gain, net of a tax (benefit) provision of $( 55 ), $ 292 , and $ 1,195 , respectively
+Added: COMPREHENSIVE INCOME
The accompanying notes are an integral part of these consolidated financial statements.
10 unchanged sentences
Share-based compensation
−Removed: Unrealized loss on marketable securities, net of tax benefit of $ 973
+Added: Unrealized gain on marketable securities, net of tax provision of $ 1,195
+Added: Distribution of Mural Oncology plc
BALANCE — December 31, 2023
1 unchanged sentence
Receipt of Alkermes' ordinary shares for the purchase of stock options or to satisfy minimum tax withholding obligations related to share-based awards
+Added: Repurchase of Alkermes' ordinary shares
Share-based compensation
Unrealized gain on marketable securities, net of tax provision of $ 292
−Removed: Distribution of Mural Oncology plc
BALANCE —December 31, 2024
3 unchanged sentences
Share-based compensation
−Removed: Unrealized gain on marketable securities, net of tax provision of $ 292
+Added: Unrealized loss on marketable securities, net of tax benefit of $ 55
BALANCE —December 31, 2025
6 unchanged sentences
CASH FLOWS FROM OPERATING ACTIVITIES:
−Removed: Net income (loss)
−Removed: Adjustments to reconcile net income (loss) to cash flows from operating activities:
+Added: Adjustments to reconcile net income to cash flows from operating activities:
Depreciation and amortization
1 unchanged sentence
Deferred income taxes
−Removed: Change in the fair value of contingent consideration
Other non-cash charges
11 unchanged sentences
Additions of property, plant and equipment
−Removed: Proceeds from the sale of equipment
−Removed: Proceeds from contingent consideration
+Added: Proceeds from the sale of property, plant and equipment
Return of Fountain Healthcare Partners II, L.P.
2 unchanged sentences
Sales and maturities of investments
−Removed: Cash flows (used in) provided by investing activities
+Added: Cash flows provided by (used in) investing activities
CASH FLOWS FROM FINANCING ACTIVITIES:
5 unchanged sentences
Principal payments of long-term debt
−Removed: Cash flows used in financing activities
−Removed: NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
−Removed: CASH AND CASH EQUIVALENTS—Beginning of period
−Removed: CASH AND CASH EQUIVALENTS—End of period
+Added: Cash flows provided by (used in) financing activities
+Added: NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
+Added: CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period
+Added: CASH, CASH EQUIVALENTS AND RESTRICTED CASH—End of period
+Added: RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH
+Added: Cash and cash equivalents
+Added: Restricted cash
+Added: Total cash, cash equivalents and restricted cash
SUPPLEMENTAL CASH FLOW DISCLOSURE:
8 unchanged sentences
Alkermes plc is a global biopharmaceutical company that seeks to develop innovative medicines in the field of neuroscience.
−Removed: Alkermes has a portfolio of proprietary commercial products for the treatment of alcohol dependence and opioid dependence, schizophrenia and bipolar I disorder and a pipeline of clinical and preclinical candidates in development for neurological disorders, including narcolepsy and idiopathic hypersomnia.
+Added: Alkermes has a portfolio of proprietary commercial products for the treatment of alcohol dependence and opioid dependence, schizophrenia, bipolar I disorder and narcolepsy and a pipeline of clinical and preclinical candidates in development for neurological disorders.
Headquartered in Ireland, Alkermes also has a corporate office and research and development (“R&D”) center in Massachusetts and a manufacturing facility in Ohio.
+Added: In October 2025, the Company and Avadel Pharmaceuticals plc (“Avadel”) entered into a definitive transaction agreement, subsequently amended in November 2025 (the “Transaction Agreement”), pursuant to which the Company agreed to acquire the entire issued and to be issued ordinary share capital of Avadel 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 “Avadel Acquisition”).
+Added: The Company incurred costs of approximately $ 10.0 million in connection with the Avadel Acquisition during the fourth quarter of 2025.
+Added: On February 12, 2026, the Company successfully completed the Avadel Acquisition, adding both LUMRYZ to the Company’s portfolio of proprietary commercial products and a commercial organization with experience in narcolepsy.
In May 2024, the Company completed the sale of its development and manufacturing facility in Athlone, Ireland (the “Athlone Facility”) and related business to Novo Nordisk (“Novo”) pursuant to an asset purchase agreement entered into in December 2023.
−Removed: The Company and Novo also entered into subcontracting arrangements to continue certain development and manufacturing activities performed at the Athlone Facility for a period of time after the closing of the transaction, which activities may continue through the end of 2025.
−Removed: In connection with the sale of the Athlone Facility, the Company received $ 97.9 million from Novo, which included a payment of approximately $ 91.0 million for the facility and certain related assets, and recorded a gain of approximately $ 1.5 million within “ Other income (expense), net ” in the accompanying consolidated statements of operations and comprehensive income (loss) for the year ended December 31, 2024.
−Removed: As of December 31, 2023, the Company classified the assets described under the asset purchase agreement for the sale as “Assets held for sale” in the accompanying consolidated balance sheet.
+Added: The Company and Novo also entered into subcontracting arrangements to continue certain development and manufacturing activities performed at the Athlone Facility for a period of time after the closing of the transaction, which activities concluded by the end of 2025.
+Added: In connection with the sale of the Athlone Facility, the Company received $ 97.9 million from Novo, which included a payment of approximately $ 91.0 million for the facility and certain related assets, and recorded a gain of approximately $ 1.5 million within “ Other income (expense), net ” in the accompanying consolidated statements of operations and comprehensive income for the year ended December 31, 2024.
In November 2023, the Company completed the separation of its former oncology business into Mural Oncology plc (“Mural”), a new, independent, publicly-traded company (the “Separation”).
4 unchanged sentences
Principles of Consolidation
−Removed: The consolidated financial statements include the accounts of Alkermes plc and its wholly-owned subsidiaries.
+Added: The consolidated financial statements include the accounts of Alkermes plc and its wholly-owned subsidiaries that were subsidiaries of Alkermes plc during the year ended December 31, 2025 and do not include any accounts of subsidiaries acquired in February 2026 as part of the Avadel Acquisition.
Intercompany accounts and transactions have been eliminated.
1 unchanged sentence
Reclassification
−Removed: The Company has presented its former oncology business as discontinued operations in its consolidated financial statements as of December 31, 2023 and for the years ended December 31, 2023 and 2022.
+Added: The Company has presented its former oncology business as discontinued operations in its consolidated statement of operations and comprehensive income as of December 31, 2023.
See Note 15, Discontinued Operations in these “Notes to Consolidated Financial Statements” in this Annual Report for additional information.
−Removed: Discontinued Operations
−Removed: The Company determined that the Separation met the criteria for classification of the former oncology business as discontinued operations in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 205, Discontinued Operations .
−Removed: Accordingly, the accompanying consolidated financial statements have been updated to present the results of the oncology business as discontinued operations through the Separation Date for the years ended December 31, 2023 and 2022 in the consolidated statements of operations and comprehensive income (loss).
−Removed: Assets Held for Sale
−Removed: In connection with the sale of the Athlone Facility, the Company reviewed FASB ASC 805, Business Combinations (“Topic 805”) and, based on the definitions therein, determined that the Athlone Facility constituted a business.
−Removed: Accordingly, the assets associated with the sale of the Athlone Facility were classified as “Assets held for sale” in the accompanying consolidated balance sheet as of December 31, 2023.
ALKERMES PLC AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+Added: Discontinued Operations
+Added: The Company determined that the Separation met the criteria for classification of the former oncology business as discontinued operations in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 205, Discontinued Operations .
+Added: Accordingly, the accompanying consolidated financial statements have been updated to present the results of the oncology business as discontinued operations through the Separation Date for the year ended December 31, 2023 in the consolidated statements of operations and comprehensive income.
Use of Estimates
3 unchanged sentences
Actual results may differ from these estimates under different assumptions or conditions.
+Added: Cash, Cash Equivalents and Restricted Cash
Cash and cash equivalents
1 unchanged sentence
The Company considers as cash equivalents only those investments that are highly liquid, readily convertible into cash and so near their maturity (three months from the date of purchase) that they present insignificant risk of change in value because of interest rate changes.
+Added: Restricted Cash
+Added: The Company’s restricted cash balance as of December 31, 2025 represents cash held in escrow to finance the portion of the consideration for the Avadel Acquisition that is in excess of the amounts secured under the bridge term loan credit agreement, as amended and restated on November 18, 2025 (the “Bridge Credit Agreement”).
The Company has investments in various types of securities, consisting primarily of United States (“U.S.”).
2 unchanged sentences
The Company limits the amount of credit exposure to any one financial institution or corporate issuer.
−Removed: At December 31, 2024, substantially all these investments were classified as available-for-sale and were recorded at fair value.
−Removed: Unrealized gains and losses are included in accumulated other comprehensive loss in equity, net of related tax, unless:
−Removed: (i) the security has experienced a credit loss;
−Removed: (ii) the Company has determined that it has the intent to sell the security;
−Removed: or (iii) the Company has determined that it is more likely than not that it will have to sell the security before its expected recovery.
−Removed: Periodic reviews are conducted to identify and evaluate each investment that has an unrealized loss in accordance with the meaning of other-than-temporary impairment.
−Removed: An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis.
−Removed: For available-for-sale debt securities with unrealized losses, the Company performs an analysis to assess whether it intends to sell, or whether it would more likely than not be required to sell, the security before the expected recovery of the amortized cost basis.
−Removed: Where the Company intends to sell a security, or may be required to do so, the security’s decline in fair value is deemed to be other-than-temporary and the full amount of the unrealized loss is reflected in earnings as an impairment loss.
−Removed: Regardless of the Company’s intent to sell a security, the Company performs additional analysis on all securities with unrealized losses to evaluate losses associated with the creditworthiness of the security.
−Removed: Credit losses are identified where the Company does not expect to receive cash flows sufficient to recover the amortized cost basis of a security.
+Added: The Company classifies these investments as available-for-sale, with such investments carried at fair value and unrealized gains and losses included in accumulated other comprehensive income, net of related tax.
+Added: Realized gains and losses on available-for-sale debt securities are included in other income (expense), net.
+Added: The Company reviews its portfolio of available-for-sale debt securities, using both quantitative and qualitative factors, to determine if declines in fair value below cost have resulted from a credit-related loss or other factors.
+Added: If the decline in fair value is due to credit-related factors, a loss is recognized in net income, whereas if the decline in fair value is not due to credit-related factors, the loss is recorded in other comprehensive income.
The Company’s held-to-maturity investments are restricted investments held as collateral under letters of credit related to certain of the Company’s agreements and are included in “Investments—long-term,” in the accompanying consolidated balance sheets.
6 unchanged sentences
treasury securities, marketable securities classified as cash equivalents and a fixed term deposit account;
+Added: ALKERMES PLC AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
• Level 2 –these valuations are based on quoted prices for identical or similar assets in active markets or other market observable inputs such as interest rates, yield curves, foreign currency spot rates and option pricing valuation models.
1 unchanged sentence
government agency debt securities and investments in corporate debt securities that are trading in the credit markets;
−Removed: ALKERMES PLC AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+Added: • Level 3 - these valuations are based on significant inputs not observable in markets.
+Added: Assets utilizing Level 3 inputs at December 31, 2025 included an investments in a corporate debt security.
The carrying amounts reflected in the consolidated balance sheets for cash and cash equivalents, accounts receivable, contract assets, other current assets, accounts payable and accrued expenses and accrued sales discounts, allowances and reserves approximate fair value due to their short-term nature.
7 unchanged sentences
and overhead.
−Removed: Overhead is based on the normal capacity of the Company’s production facility and does not include costs from abnormally low production or idle capacity, which are expensed directly to the consolidated statement of operations and comprehensive income (loss).
+Added: Overhead is based on the normal capacity of the Company’s production facility and does not include costs from abnormally low production or idle capacity, which are expensed directly to the consolidated statement of operations and comprehensive income.
The Company capitalizes inventory costs associated with its products prior to regulatory approval when, based on management’s judgment, future commercialization of the product is considered probable and future economic benefit from such product is expected to be realized.
10 unchanged sentences
Shorter of useful life or lease term
−Removed: Goodwill and Intangible Assets
Goodwill represents the excess cost of the Company’s investment in the net assets of acquired companies over the fair value of the underlying identifiable net assets at the date of acquisition.
8 unchanged sentences
If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then the Company would record an impairment loss equal to the difference.
+Added: ALKERMES PLC AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
When some, but not all, of a reporting unit is to be disposed of, the accounting for that reporting unit’s goodwill will depend on whether the disposal group constitutes a business.
2 unchanged sentences
and (ii) the portion of the reporting unit that will be retained.
−Removed: ALKERMES PLC AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
−Removed: The Company’s finite-lived intangible assets, consisting of core developed technology and collaboration agreements acquired as part of the Business Combination, were recorded at fair value at the time of their acquisition and are stated within the Company’s consolidated balance sheets net of accumulated amortization.
−Removed: The finite-lived intangible assets are amortized over their estimated useful lives using the economic use method, which reflects the pattern that the economic benefits of the intangible assets are consumed as revenue is generated from the underlying patent or contract.
−Removed: The useful lives of the Company’s intangible assets are primarily based on the legal or contractual life of the underlying patent or contract, which does not include additional years for the potential extension or renewal of the contract or patent.
Impairment of Long-Lived Assets
18 unchanged sentences
Product Sales, Net
−Removed: The Company’s product sales, net consist of sales in the U.S.
−Removed: of VIVITROL ® , ARISTADA ® , ARISTADA INITIO ® and LYBALVI ® , primarily to wholesalers, specialty distributors and pharmacies.
+Added: The Company’s product sales, net in 2025 and 2024 consisted of sales in the U.S.
+Added: of ARISTADA ® , ARISTADA INITIO ® LYBALVI ® and VIVITROL ® , primarily to wholesalers, specialty distributors and 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.
10 unchanged sentences
The Company estimates expected unit sales to individuals covered by Medicaid and rebates per unit under the Medicaid program and adjusts its rebate accrual based on actual unit sales and rebates per unit and changes in trends in Medicaid utilization.
+Added: In 2025, actual Medicaid utilization rates related to VIVITROL and ARISTADA/ARISTADA INITIO, were lower than original estimates by approximately $ 26.7 million and $ 13.6 million, respectively.
In 2024, actual Medicaid utilization rates related to VIVITROL were lower than original estimates, due, in part, to $ 8.7 million in actual credits received from certain states in the fourth quarter of 2024 related to duplicate Medicaid billings ;
−Removed: Medicaid rebates for the Company’s other products have not differed materially from the Company’s estimates;
• Chargebacks —discounts that occur when contracted indirect customers purchase directly from wholesalers and specialty distributors.
13 unchanged sentences
To date, actual product returns have not differed materially from the Company’s estimates;
−Removed: • Medicare Part D —the Company records accruals for Medicare Part D liabilities under the Medicare Coverage Gap Discount Program (“CGDP”) as a reduction of sales.
−Removed: Under the CGDP, patients reaching the annual coverage gap threshold are eligible for reimbursement coverage for out-of-pocket costs for covered prescription drugs.
−Removed: Under an agreement with the Centers for Medicare and Medicaid Services, manufacturers are responsible to reimburse prescription plan sponsors for the portion of out-of-pocket expenses not covered under their Medicare plans.
−Removed: To date, actual Medicare Part D rebates have not differed materially from the Company’s estimates.
+Added: • Medicare Part D —the Company records accruals for Medicare Part D liabilities under the Medicare Manufacturer Discount Program as a reduction of sales.
+Added: Under an agreement with the Centers for Medicare and Medicaid Services, manufacturers are responsible for reimbursing Medicare for a specified percentage discount on the cost of applicable drugs during the initial coverage phase and a specified percentage discount during the catastrophic coverage phase of the Medicare Part D benefit.
+Added: Actual Medicare Part D rebates have not differed materially from the Company’s estimates.
A rollfor ward of the Company’s provisions for sales and allowances is as follows:
−Removed: December 31, 2024
+Added: Year Ended December 31, 2025
(In thousands)
5 unchanged sentences
Adjustments relating to prior years
−Removed: Payments/credits relating to sales in current year
−Removed: Payments/credits relating to sales in prior years
+Added: Payments relating to sales in current year
+Added: Payments relating to sales in prior years
Ending balance — December 31, 2025
−Removed: December 31, 2023
+Added: Year Ended December 31, 2024
(In thousands)
8 unchanged sentences
Ending balance — December 31, 2024
−Removed: December 31, 2022
+Added: Year Ended December 31, 2023
(In thousands)
10 unchanged sentences
(2) “Discounts” in clude “Chargebacks” and “Product Discounts”
−Removed: Total revenue-related reserves as of December 31, 2024 and 2023, included in our consolidated balance sheets, are summarized as follows:
ALKERMES PLC AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
−Removed: Year Ended December 31,
+Added: Total revenue-related reserves as of December 31, 2025 and 2024, included in our consolidated balance sheets, are summarized as follows:
(In thousands)
45 unchanged sentences
Contract liabilities consist of contractual obligations related to deferred revenue.
−Removed: At December 31, 2024 and 2023, $ 1.2 million and $ 2.7 million of the contract liabilities, respectively, were classified as “Contract liabilities–short-term” in the accompanying consolidated balance sheets and none and $ 2.1 million of the contract liabilities, respectively, were classified as “Other long-term liabilities” in the accompanying consolidated balance sheets.
−Removed: Contract liabilities consisted of the following:
+Added: At December 31, 2025 and 2024, none and $ 1.2 million of the contract liabilities, respectively, were classified as “Contract liabilities–short-term” in the accompanying consolidated balance sheets and none of the contract liabilities in either period were classified as “Other long-term liabilities” in the accompanying consolidated balance sheets.
+Added: Contrac t liabilities consisted of the following:
(In thousands)
10 unchanged sentences
dollars at exchange rates prevailing on the subsequent balance sheet date.
−Removed: Gains and losses as a result of translation adjustments are recorded within “Other income (expense), net” in the accompanying consolidated statements of operations and comprehensive income (loss).
−Removed: During the years ended December 31, 2024, 2023 and 2022, the Company recorded losses of $ 0.8 million and $ 0.5 million and a gain of $ 0.7 million, respectively, on foreign currency translation.
+Added: Gains and losses as a result of translation adjustments are recorded within “Other income (expense), net” in the accompanying consolidated statements of operations and comprehensive income.
+Added: During the years ended December 31, 2025, 2024 and 2023, the Company recorded a gain of $ 1.0 million and losses of $ 0.8 million and $ 0.5 million, respectively, on foreign currency translation.
Concentrations
6 unchanged sentences
Indicates the revenues or receivables for the customer did not exceed 10 % of the Company’s total in each category as of or for the years ended December 31, 2025, 2024 and 2023, as noted.
−Removed: ALKERMES PLC AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The Company holds its interest-bearing investments with major financial institutions and, in accordance with documented investment policies, the Company limits the amount of credit exposure to any one financial institution or corporate issuer.
The Company’s investment objectives are, first, to ensure liquidity and conservation of capital and, second, to generate investment income.
+Added: ALKERMES PLC AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Geographic Information
13 unchanged sentences
Cash and cash equivalents
+Added: Restricted cash
Investments—short-term
Receivables, net
−Removed: Assets held for sale
Other current assets
12 unchanged sentences
Selling, general and administrative (“SG&A”) expenses are primarily comprised of employee-related expenses associated with selling and marketing, finance, human resources, legal, information technology and other administrative personnel, outside marketing, advertising, financial and legal expenses and other general and administrative costs.
−Removed: ALKERMES PLC AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Advertising costs are expensed as incurred.
During the years ended December 31, 2025, 2024 and 2023, advertising costs totaled $ 89.7 million, $ 107.6 million and $ 127.6 million, respectively.
+Added: ALKERMES PLC AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Share-Based Compensation
34 unchanged sentences
Compensation expense, including the effect of forfeitures, is recognized over the applicable service period.
−Removed: ALKERMES PLC AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Performance-Based Restricted Stock Unit Awards
4 unchanged sentences
Cumulative adjustments are recorded on a quarterly basis to reflect subsequent changes to the estimated outcome of the performance criteria until the date that the final outcome of the performance criteria is determined.
+Added: ALKERMES PLC AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The Company recognizes income taxes under the asset and liability method.
8 unchanged sentences
The Company also accrues for potential interest and penalties related to unrecognized tax benefits in income tax expense.
−Removed: Comprehensive Income (Loss)
−Removed: Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss).
−Removed: Other comprehensive income (loss) includes changes in equity that are excluded from net income (loss), such as unrealized holding gains and losses on available-for-sale investments.
−Removed: Earnings (Loss) Per Share
−Removed: Basic earnings (loss) per ordinary share from continuing operations is calculated based upon net income (loss) from continuing operations available to holders of ordinary shares divided by the weighted average number of ordinary shares outstanding.
+Added: Comprehensive Income
+Added: Comprehensive income consists of net income and other comprehensive income.
+Added: Other comprehensive income includes changes in equity that are excluded from net income, such as unrealized holding gains and losses on available-for-sale investments.
+Added: Earnings Per Share
+Added: Basic earnings per ordinary share from continuing operations is calculated based upon net income from continuing operations available to holders of ordinary shares divided by the weighted average number of ordinary shares outstanding.
Basic loss per ordinary share from discontinued operations is calculated based upon net loss from discontinued operations available to holders of ordinary shares, divided by the weighted average number of ordinary shares outstanding.
8 unchanged sentences
Please refer to Note 18, Segment Reporting , in these “Notes to Consolidated Financial Statements” in this Annual Report for further information.
−Removed: ALKERMES PLC AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Employee Benefit Plans
4 unchanged sentences
During the years ended December 31, 2025, 2024 and 2023, the Company contributed $ 16.3 million, $ 15.1 million and $ 15.0 million, respectively, to match employee deferrals under the 401(k) Plan.
+Added: ALKERMES PLC AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Defined Contribution Plan
8 unchanged sentences
Improvements to Income Tax Disclosures, to enhance the transparency and decision usefulness of income tax disclosures in order to provide information to assist key stakeholders in better assessing how the Company’s operations and related tax risks and tax planning and operational opportunities affect the Company’s tax rate and prospects for future cash flows.
−Removed: This ASU becomes effective for public companies for annual periods beginning after December 15, 2024.
−Removed: Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance.
−Removed: This guidance will be applied on a prospective basis.
−Removed: The Company is currently evaluating the impact this ASU will have on its consolidated financial statements and related disclosures.
+Added: This ASU became effective for public companies for annual periods beginning after December 15, 2024.
+Added: This guidance was applied on a retrospective basis.
+Added: See Note 17, Income Taxes in these “Notes to Consolidated Financial Statements” in this Annual Report for additional information.
In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income-Expense Disaggregation Disclosures , to improve disclosures about a public business entity’s 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.
2 unchanged sentences
The Company is currently evaluating the impact this ASU will have on its consolidated financial statements and related disclosures.
−Removed: DISCONTINUED OPERATIONS
−Removed: Mural Oncology Separation
−Removed: In November 2023, the Company completed the Separation.
−Removed: In connection with the Separation, the Company entered into a separation agreement with Mural, dated as of November 13, 2023, that, among other things, set forth the Company’s agreements with Mural regarding the principal actions taken or to be taken in connection with the Separation, including the Distribution.
−Removed: The separation agreement identified those assets to be transferred to, liabilities to be assumed by and contracts to be assigned to Mural, including the operating lease for the office and laboratory space at 852 Winter Street in Waltham, Massachusetts, as part of the Separation, and it provided for when and how such transfers, assumptions and assignments were to occur.
−Removed: The purpose of the separation agreement was to provide Mural and the Company with those assets necessary to operate their respective businesses and to retain or assume the respective liabilities related to those assets.
−Removed: Each of Mural and the Company agreed to releases with respect to pre-Distribution claims, and cross-indemnities with respect to post-Distribution claims, that are principally designed to place financial responsibility for the obligations and liabilities allocated to Mural under the separation agreement with Mural, and financial responsibility for the obligations and liabilities allocated to the Company under the separation agreement with the Company.
−Removed: The Company and Mural are also each subject to mutual six-month employee non-solicitation and non-hire restrictions, subject to certain customary exceptions, and certain confidentiality restrictions and information sharing obligations.
−Removed: ALKERMES PLC AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
−Removed: The transfer of assets and liabilities to Mural was effected through a contribution in accordance with the separation agreement, as summarized below:
−Removed: (In thousands)
−Removed: November 15, 2023
−Removed: Current Assets:
−Removed: Cash and cash equivalents
−Removed: Total current assets
−Removed: Property, plant and equipment, net
−Removed: Right-of-use assets
−Removed: Deferred tax asset
−Removed: Current Liabilities:
−Removed: Operating lease liabilities—short-term
−Removed: Total current liabilities
−Removed: Operating lease liabilities—long-term
−Removed: Total liabilities
−Removed: Net assets transferred to Mural
−Removed: The Company determined that the Separation and related Distribution qualified as tax-free for U.S.
−Removed: federal income tax purposes, which required significant judgment by management.
−Removed: In making such determinations, the Company applied U.S.
−Removed: federal tax law to relevant facts and circumstances and obtained:
−Removed: (i) a favorable private letter ruling from the IRS;
−Removed: (ii) a tax opinion;
−Removed: and (iii) other external tax advice related to the concluded tax treatment.
−Removed: If the Separation and Distribution were to ultimately fail to qualify for tax-free treatment for U.S.
−Removed: federal income tax purposes, the Company and/or its shareholders could be subject to significant liabilities, which could have material adverse impacts on the Company’s business, financial condition, results of operations and cash flows in future reporting periods.
−Removed: Furthermore, other than taxes recorded on the transfer of intellectual property, the Company determined that the Separation and related Distribution qualified as tax-free for Irish tax purposes, which required significant judgment by management.
−Removed: In making such determinations, the Company applied Irish tax law to relevant facts and circumstances and obtained:
−Removed: (i) a tax opinion;
−Removed: and (ii) other external tax advice related to the concluded tax treatment.
−Removed: If the Separation and Distribution were to ultimately fail to qualify for tax-free treatment for Irish tax purposes, the Company and/or its shareholders could be subject to significant liabilities, which could have material adverse impacts on the Company’s business, financial condition, results of operations and cash flows in future reporting periods.
−Removed: In connection with the Separation, the Company also entered into a tax matters agreement with Mural, dated as of November 13, 2023 .
−Removed: The tax matters agreement governs the Company’s and Mural’s respective rights, responsibilities and obligations with respect to taxes (including taxes arising in the ordinary course of business and taxes, if any, incurred as a result of any failure of the Distribution, together with certain related transactions, to qualify as tax-free for U.S.
−Removed: federal income tax purposes), tax attributes, the preparation and filing of tax returns, the control of audits and other tax proceedings, and assistance and cooperation in respect of tax matters.
−Removed: In connection with the Separation, the Company also entered into the Employee Matters Agreement.
−Removed: The Employee Matters Agreement, as amended, governs the Company’s, Mural’s and their respective subsidiaries’ and affiliates’ rights, responsibilities and obligations after the Separation with respect to, employment, benefits and compensation matters relating to employees and former employees (and their respective dependents and beneficiaries) who are or were associated with the Company, including those who became employees of Mural in connection with the Separation;
−Removed: the allocation of assets and liabilities generally relating to employees, employment or service-related matters and employee benefit plans;
−Removed: other human resources, employment and employee benefits matters;
−Removed: and the treatment of equity-based awards granted by the Company prior to the Separation.
−Removed: Discontinued Operations
−Removed: The results of the former oncology business and transaction costs related to the Separation have been reflected as “Loss from discontinued operations, net of taxes” in the accompanying consolidated statement of operations and comprehensive income (loss) through the Separation Date.
−Removed: Prior periods have been recast to reflect this presentation.
−Removed: The transaction costs related to the Separation were $ 36.0 million during 2023 and $ 1.4 million during 2022, and primarily relate to professional fees for separation activities within the finance, tax, legal and information technology functions.
−Removed: ALKERMES PLC AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
−Removed: The following table summarizes expenses of the discontinued operations for the years ended December 31, 2024, 2023 and 2022:
−Removed: Year Ended December 31,
−Removed: (In thousands)
−Removed: Operating expenses from discontinued operations
−Removed: Cost of goods manufactured
−Removed: Research and development
−Removed: Selling, general and administrative
−Removed: Total operating expenses from discontinued operations
−Removed: Operating loss from discontinued operations
−Removed: Income tax benefit from discontinued operations
−Removed: Net loss and comprehensive loss from discontinued operations
−Removed: There were no assets and $ 4.5 million of liabilities related to the Separation as of December 31, 2023.
−Removed: All assets were transferred to Mural as of the Separation Date.
−Removed: The $ 4.5 million of liabilities classified as “Liabilities related to discontinued operations” in the accompanying consolidated balance sheet as of December 31, 2023 related to bonus amounts accrued for employees that transferred to Mural during 2023 through the Separation Date that were paid by the Company in the first quarter of 2024, in accordance with the terms of the employee matters agreement entered into between the Company and Mural.
−Removed: The following table summarizes the significant non-cash items and capital expenditures of the discontinued operations that are included in the consolidated statements of cash flows for the years ended December 31, 2023 and 2022:
−Removed: Year Ended December 31,
−Removed: (In thousands)
−Removed: OPERATING ACTIVITIES:
−Removed: Share-based compensation expense
−Removed: Right-of-use assets
−Removed: Operating lease liabilities
−Removed: INVESTING ACTIVITIES:
−Removed: Additions of property, plant and equipment
+Added: In September 2025, the FASB issued ASU 2025-06, Targeted Improvements to the Accounting for Internal-Use Software.
+Added: This ASU updates the requirements for capitalization of internal-use software, removing all reference to prescriptive and sequential software development stages (referred to as “project stages”).
+Added: This ASU is effective for annual periods beginning after December 15, 2027, and for interim periods within those fiscal years.
+Added: The Company is currently assessing the impact this ASU will have on its consolidated financial statements and related disclosures.
+Added: In December 2025, the FASB issued ASU 2025-11, Interim Reporting .
+Added: The amendments in this update clarify current interim disclosure requirements and provide a comprehensive list of required interim disclosures.
+Added: The update also incorporates a disclosure principle that requires entities to disclose events that occur after the end of the reporting period.
+Added: This update is effective for interim periods within annual periods beginning after December 15, 2027, though early adoption is permitted.
+Added: The Company is currently assessing the impact this ASU will have on its consolidated financial statements and related disclosures.
REVENUE FROM CONTRACTS WITH CUSTOMERS
35 unchanged sentences
sales of the long-acting INVEGA products.
−Removed: During 2023, the Company recor ded $ 486.1 mill ion in royalty revenue from sales of the long-acting INVEGA products, including $ 195.4 million related to back royalties and associated interest related to net sales of the long-acting INVEGA in the U.S.
−Removed: in 2022 and resumed recognizing royalty revenue related to worldwide net sales of the long-acting INVEGA products of approximately $ 290.7 million, as compared to royalty revenue of $ 115.7 million during 2022.
−Removed: In October 2022 and November 2022, an arbitration panel found that the Company must return to Acorda Therapeutics, Inc.
−Removed: (“Acorda”) $ 16.5 million (inclusive of prejudgment interest and administrative fees) and $ 1.8 million (inclusive of prejudgment interest), respectively, previously paid by Acorda under a license agreement between the Company and Acorda.
−Removed: These amounts
+Added: During 2023, the Company recor ded $ 486.1 mill ion 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.
+Added: 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.
ALKERMES PLC AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
−Removed: represented a portion of the royalty revenue paid to the Company by Acorda since July 2020 related to AMPYRA.
−Removed: The Company paid Acorda the aggregate $ 18.3 million in the fourth quarter of 2022.
−Removed: In addition, during the three months ended June 30, 2022, the Company had recorded $ 3.2 million of royalty revenue related to AMPYRA as the Company believed that it had met the necessary revenue recognition criteria under Topic 606.
−Removed: However, as a result of the arbitration ruling, the Company reversed the $ 3.2 million as the panel found that the Company was no longer entitled to be paid those royalties.
−Removed: During the three months ended September 30, 2022, the Company recorded both the $ 18.3 million in repayments and the $ 3.2 million reversal as reversals of royalty revenue within “Manufacturing and royalty revenue” in the accompanying consolidated statements of operations and comprehensive income (loss).
−Removed: The amounts related to such arbitration ruling were included as part of “Other” within the manufacturing and royalty revenue table above for the year ended December 31, 2022.
−Removed: As a result of the arbitration ruling, the Company has no contractual obligation to manufacture and supply AMPYRA or contractual right to receive future manufacturing or royalty revenue related to AMPYRA.
−Removed: Refer to Note 19, Commitments and Contingent Liabilities within the “Notes to Consolidated Financial Statements” in this Annual Report for information regarding additional legal proceedings related to the arbitration with Acorda.
Investments consist of the following:
6 unchanged sentences
Total short-term investments
−Removed: Long-term investments:
−Removed: Available-for-sale securities:
−Removed: government and agency debt securities
−Removed: Corporate debt securities
Held-to-maturity securities:
7 unchanged sentences
Corporate debt securities
−Removed: government debt securities
Total short-term investments
7 unchanged sentences
Total investments
−Removed: At December 31, 2024, the Company reviewed its investment portfolio to assess whether the unrealized losses on its available-for-sale investments were temporary.
−Removed: Investments with unrealized losses consisted primarily of corporate debt securities and debt securities issued and backed by U.S.
−Removed: agencies and the U.S.
−Removed: At December 31, 2024, 77 of the Company’s 320 investment securities were in an unrealized loss position and had an aggregate estimated fair value of $ 112.7 million.
−Removed: Approximately 41 % and 59 % of the Company’s investment securities at December 31, 2024 were in corporate debt securities, with a minimum rating of A2
−Removed: ALKERMES PLC AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
−Removed: (Moody’s)/A (Standard and Poor’s), and debt securities issued by the U.S.
−Removed: government or its agencies, respectively.
−Removed: The primary reason for the unrealized losses in the Company’s investment portfolio is that its investments are fixed-rate securities acquired in a rising interest rate environment.
−Removed: In making the determination whether the decline in fair value of these securities was temporary, the Company evaluated whether it intended to sell the security and whether it was more likely than not that the Company would be required to sell the security before recovering its amortized cost basis.
−Removed: The Company has the intent and ability to hold these investments until recovery, which may be at maturity.
Realized gains and losses on the sales and maturities of investments, which were identified using the specific identification method, were as follows:
10 unchanged sentences
After 1 year through 5 years
+Added: In February 2025, the Company entered into an agreement whereby it is committed to provide up to € 10.0 million to a partnership, Fountain Healthcare Partners Fund IV, L.P.
+Added: (“Fountain”), which was created to carry on the business of investing exclusively in companies and businesses engaged in the healthcare, pharmaceutical and life sciences sectors.
+Added: The Company’s commitment represents approximately 9.2 % of the partnership’s total funding, and the Company is accounting for its investment in Fountain under the equity method.
+Added: As of December 31, 2025, the Company had made payments of, and its investment is equal to, $ 0.7 million (€ 0.7 million), which is included within “Other assets” in the accompanying condensed consolidated balance sheets.
+Added: ALKERMES PLC AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis and indicates the fair value hierarchy and the valuation techniques the Company utilized to determine such fair value:
6 unchanged sentences
Corporate debt securities
−Removed: government debt securities
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 year ended December 31, 2025.
−Removed: At December 31, 2024, the Company had no investments with fair values that were determined using Level 3 inputs.
+Added: The following table is a rollforward of the fair value of the Company’s assets with fair values that were determined using Level 3 inputs at December 31, 2025:
+Added: (In thousands)
+Added: Balance, January 1, 2025
+Added: Purchase of a corporate debt security
+Added: Balance, December 31, 2025
The Company’s investments in U.S.
3 unchanged sentences
The Company validated the prices developed using the market-observable data by obtaining market values from other pricing sources, analyzing pricing data in certain instances and confirming that the relevant markets are active.
−Removed: ALKERMES PLC AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
−Removed: In April 2015, the Company sold its Gainesville, GA manufacturing facility, the related manufacturing and royalty revenue associated with certain products manufactured at the facility, and the rights to IV/IM and parenteral forms of Meloxicam to Recro Pharma, Inc.
−Removed: (“Recro”) and Recro Gainesville LLC (such transaction the “Gainesville Transaction”).
−Removed: The Gainesville Transaction included in the purchase price contingent consideration tied to low double digit royalties on net sales of the IV/IM and parenteral forms of Meloxicam and any other product with the same active ingredient as Meloxicam IV/IM that is discovered or identified using certain of the Company’s IP to which Recro was provided a right of use, through license or transfer, pursuant to the Gainesville Transaction (such products, the “Meloxicam Products”), and milestone payments upon the achievement of certain regulatory and sales milestones related to the Meloxicam Products.
−Removed: In November 2019, Recro spun out its acute care segment to Baudax Bio, Inc.
−Removed: (“Baudax”), a publicly-traded pharmaceutical company.
−Removed: As part of this transaction, Recro’s obligations to pay certain contingent consideration from the Gainesville Transaction were assigned and/or transferred to Baudax.
−Removed: In Baudax’s Quarterly Report on Form 10-Q for the period ended September 30, 2022, Baudax continued to include disclosures regarding its ability to continue as a going concern, which first appeared in its Annual Report on Form 10-K for the period ended December 31, 2021.
−Removed: In March 2022, Baudax reduced its workforce by approximately 80 %, which was designed to reduce its operational expenses and conserve its cash resources.
−Removed: In light of Baudax’s disclosures and the fact that, as of September 30, 2022, Baudax had only paid $ 1.2 million of the $ 6.4 million that was due to the Company in March 2022, the Company determined, during the three months ended September 30, 2022, that it was unlikely to collect any further proceeds under this arrangement and reduced the fair value of the contingent consideration to zero within “Change in the fair value of contingent consideration” in the accompanying consolidated statements of operations and comprehensive income (loss) for the year ended December 31, 2022.
−Removed: In addition, during the three months ended September 30, 2022, the Company determined that certain construction in progress related to the manufacture of ANJESO ® had no future value and recorded a $ 2.3 million write off within “Other income (expense), net” in the accompanying consolidated statements of operations and comprehensive income (loss) for the year ended December 31, 2022.
−Removed: In December 2022, Baudax announced that it would discontinue the sale of ANJESO and the U.S.
−Removed: Food and Drug Administration (“FDA”) acknowledged the discontinuation of sale of ANJESO via listing in the Orange Book.
Inventory consists of the following:
5 unchanged sentences
(1) At December 31, 2025 and 2024, the Company had $ 31.7 million and $ 22.7 million, respectively, of finished goods inventory located at its third-party warehouse and shipping service provider.
+Added: ALKERMES PLC AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
PROPERTY, PLANT AND EQUIPMENT
7 unchanged sentences
Total property, plant and equipment, net
−Removed: (1) In connection with the sale of the Athlone Facility, $ 92.2 million of the Company’s property, plant and equipment was classified as “Assets held for sale” in the accompanying consolidated balance sheet at December 31, 2023 and was not included in these amounts.
−Removed: ALKERMES PLC AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Depreciation expens e was $ 31.1 million, $ 27.4 million and $ 25.7 million for the years ended December 31, 2025, 2024 and 2023, respectively.
−Removed: Also, during the years ended December 31, 2024, 2023 and 2022, the Company wrote off furniture, fixtures and equipment that had an approximate carrying valu e of $ 0.5 million, $ 1.7 million and $ 0.5 million, respectively, at the time of disposition.
Amounts included as construction in progress in the consolidated balance sheets primarily include capital expenditures at the Company’s manufacturing facility in Wilmington, Ohio.
1 unchanged sentence
The Company continues to periodically evaluate whether facts and circumstances indicate that the carrying value of its long-lived assets to be held and used may not be recoverable.
−Removed: In December 2023, the Company determined that $ 2.9 million of its construction in progress at its Wilmington, Ohio manufacturing facility had no future value and was written off through “cost of goods manufactured and sold” in the accompanying consolidated statements of operations and comprehensive income (loss) during the year ended December 31, 2023.
+Added: In December 2023, the Company determined that $ 2.9 million of its construction in progress at its Wilmington, Ohio manufacturing facility had no future value and was written off through “cost of goods manufactured and sold” in the accompanying consolidated statements of operations and comprehensive income during the year ended December 31, 2023.
INTANGIBLE ASSETS AND GOODWILL
13 unchanged sentences
Capitalized IP
−Removed: In connection with the sale of the Athlone Facility, the Company reviewed Topic 805 and determined that the Athlone Facility constituted a business and, accordingly, $ 2.0 million of the Company’s goodwill was allocated to the Athlone Facility and was classified as “Assets held for sale” in the accompanying consolidated balance sheet as of December 31, 2023.
The Company’s finite-lived intangible assets primarily consisted of collaborative agreements and the NANOCRYSTAL and oral controlled release technologies acquired as part of the EDT acquisition.
These intangible assets were fully amortized in the year ended December 31, 2024.
−Removed: The Company recorded $ 1.1 million, $ 35.7 million and $ 36.4 million of amortization expense related to its finite-lived intangible assets during the years ended December 31, 2024, 2023 and 2022, respectively.
+Added: The Company recorded less than $ 0.1 million, $ 1.1 million and $ 35.7 million of amortization expense related to its finite-lived intangible assets during the years ended December 31, 2025, 2024 and 2023, respectively.
The Company performed its annual goodwill impairment test as of October 31, 2025.
1 unchanged sentence
All of the Company’s leases are accounted for as operating leases.
−Removed: The Company leases approximately 231,000 square feet of office and laboratory space located at 900 Winter Street in Waltham, Massachusetts (the “900 Winter Street Lease”).
−Removed: The initial term of the lease commenced on January 20, 2020 , expires in 2035 and includes an option to extend the term for an additional ten-year period.
−Removed: On November 13, 2023, in connection with the Separation, Alkermes, Inc., a wholly-owned subsidiary of the Company (“Alkermes US”) and Mural Oncology, Inc., a wholly-owned subsidiary of Mural (“Mural US”) entered into an assignment and assumption of lease agreement (the “Assignment”), pursuant to which Alkermes US assigned to Mural US an operating lease for approximately 180,000 square feet of corporate office space, administrative areas and laboratories located at 852 Winter Street in Waltham, Massachusetts (the “852 Winter Street Lease”).
−Removed: Under the terms of the Assignment, Mural US assumed all of Alkermes US’ obligations under the 852 Winter Street Lease.
−Removed: In accordance with FASB ASC 842, Leases , as the Company can no longer access or direct the use of the asset following the Assignment, the 852 Winter Street Lease no longer meets the definition of a lease for the Company.
−Removed: On November 15, 2023, the effective date of the Assignment, the Company reduced its right-of-use asset and lease liability by $ 14.5 million and $ 15.4 million, respectively in the accompanying consolidated balance sheet.
−Removed: ALKERMES PLC AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
At December 31, 2025 and 2024, the operating leases held by the Company had a weighted average incremental borrowing rate of 3.6 % and 4.0 %, respectively, and a weighted average remaining lease term of 5.8 years and 7.2 years, respectively.
1 unchanged sentence
The Company recorded operating lease expense of $ 7.5 million, $ 7.2 million and $ 10.2 million for the years ended December 31, 2025, 2024 and 2023, respectively.
+Added: ALKERMES PLC AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Future lease payments under non-cancelable leases as of December 31, 2025 consisted of the following:
18 unchanged sentences
LONG-TERM DEBT
−Removed: In December 2024, the Company prepaid in full all previously outstanding term loans (the “Former Term Loans”) under the Former Credit Agreement without penalty, through paying off the remaining principal amount due of $ 289.5 million.
−Removed: The Company accounted for such prepayment as a debt extinguishment and recorded a loss of approximately $ 0.8 million within “Other income (expense), net” in the accompanying consolidated statements of operations and comprehensive income (loss) for the year ended December 31, 2024.
−Removed: The Former Term Loans bore interest at the Secured Overnight Financing Rate (“SOFR”) plus a credit spread adjustment applicable to the interest period and an applicable margin of 2.50 % with a floor of 0.5 %.
−Removed: As of December 31, 2024 and 2023, long-term debt consisted of the following:
−Removed: (In thousands)
−Removed: Former Term Loans (due March 12, 2026)
−Removed: current portion
−Removed: Long-term debt
+Added: In November 2025, the Company entered into the Bridge Credit Agreement in order to fund the Avadel Acquisition.
+Added: The Bridge Credit Agreement provided for a senior secured bridge term loan facility (the “Bridge Credit Facility”) in an aggregate principal amount of up to approximately $ 1.5 billion that was available to finance the Avadel Acquisition.
+Added: In addition, the Company placed approximately $ 731.2 million of its cash into an escrow account to finance the remainder of the consideration for the Avadel Acquisition.
+Added: Loans under the Bridge Credit Facility were available, subject to the satisfaction of certain conditions set forth in the Bridge Credit Agreement, and were scheduled to mature on the date that is 364 days after the date on which the loans were funded under the Bridge Credit Facility.
+Added: The commitments under the Bridge Credit Facility were to terminate on the earlier of (i) the date on which all of the consideration payable in respect of the Avadel Acquisition was paid in full without the making of any loans under the Bridge Credit Facility and (ii) the date on which a Mandatory Cancellation Event (as defined in the Bridge Credit Agreement) occurred or existed.
+Added: Accordingly, on February 12, 2026, in connection with completion of the Avadel Acquisition and the Company’s entry into the Credit Agreement (as defined below), the Company terminated the Bridge Credit Agreement, as the commitments under the Credit Agreement, together with the Company’s cash on hand, were sufficient to fund the Avadel Acquisition.
+Added: During the year ended December 31, 2025, the Company incurred approximately $ 12.3 million in financing costs related to the Bridge Credit Agreement which was recorded within “Interest expense” in the accompanying consolidated statements of operations and comprehensive income.
ALKERMES PLC AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
−Removed: EARNINGS (LOSS) PER SHARE
−Removed: Basic earnings (loss) per ordinary share from continuing operations is calculated based upon net income (loss) from continuing operations available to holders of ordinary shares divided by the weighted average number of ordinary shares outstanding.
+Added: On February 12, 2026, in connection with the Avadel Acquisition, 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.
+Added: Borrower, Alkermes Finance LLC, as the U.S.
+Added: 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.
+Added: 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”).
+Added: The TLA Facility matures on February 12, 2031 , and the TLB Facility matures on August 12, 2031 .
+Added: On the closing date of the Facilities (the “Closing Date”), the Company borrowed the full $ 1.525 billion available under the Facilities.
+Added: Borrowings under the TLA Facility will bear interest at an annual rate of, at the Company’s 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 initially be 2.75 % per annum or (ii) the Alternate Base Rate (as defined in the Credit Agreement) plus a Secured Net Leverage Ratio-based margin, which will initially be 1.75 % per annum.
+Added: Borrowings under the TLB Facility will bear interest at an annual rate of, at the Company’s option, either (i) the Term SOFR Rate plus a margin of 2.75 % per annum or (ii) the Alternate Base Rate plus a margin of 1.75 % per annum.
+Added: The Company has agreed to pay certain fees and expenses in connection with the Facilities, as set forth in the Credit Agreement and certain related fee letters.
+Added: The Credit Agreement (other than with respect to the TLB Facility) requires the maintenance of a maximum Secured Net Leverage Ratio and a minimum Consolidated Interest Coverage Ratio (as defined in the Credit Agreement), in each case, with the levels set forth in the Credit Agreement, as of the last day of any fiscal quarter of the Company ending after the Closing Date.
+Added: In addition, the Credit Agreement contains customary affirmative and negative covenants that apply after the Closing Date, including limitations on indebtedness, liens, mergers, consolidations, sales of assets, investments, transactions with affiliates, restricted payments and sales and leasebacks.
+Added: The Credit Agreement also contains certain customary events of default, including upon a change of control.
+Added: The Credit Agreement is guaranteed by subsidiary guarantors and secured by a lien on substantially all of the assets of the borrowers and the subsidiary guarantors, whether owned as of the Closing Date or thereafter acquired.
+Added: In December 2024, the Company prepaid in full all previously outstanding term loans (the “Former Term Loans”) under, and terminated, the Company’s then-in-effect amended and restated credit agreement without penalty, through paying off the remaining principal amount due thereunder of $ 289.5 million.
+Added: The Company accounted for such prepayment as a debt extinguishment and recorded a loss of approximately $ 0.8 million within “Other income (expense), net” in the accompanying consolidated statements of operations and comprehensive income for the year ended December 31, 2024.
+Added: EARNINGS PER SHARE
+Added: Basic earnings per ordinary share from continuing operations is calculated based upon net income from continuing operations available to holders of ordinary shares divided by the weighted average number of ordinary shares outstanding.
Basic loss per ordinary share from discontinued operations is calculated based upon net loss from discontinued operations available to holders of ordinary shares, divided by the weighted average number of ordinary shares outstanding.
2 unchanged sentences
(In thousands)
−Removed: Net income (loss) from continuing operations
+Added: Net income from continuing operations
Net loss from discontinued operations
−Removed: Net income (loss)
Weighted average number of ordinary shares outstanding
3 unchanged sentences
Dilutive ordinary share equivalents
−Removed: Shares used in calculating diluted earnings (loss) per ordinary share
−Removed: (1) Prior period amounts have been retrospectively adjusted to reflect the effects of the Separation.
+Added: Shares used in calculating diluted earnings per ordinary share
+Added: ALKERMES PLC AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The following potential ordinary share equivalents were not included in the net income (loss) per share calculation because the effect would have been anti-dilutive:
3 unchanged sentences
Restricted stock unit awards
−Removed: (1) Prior period amounts have been retrospectively adjusted to reflect the effects of the Separation.
SHAREHOLDERS’ EQUITY
3 unchanged sentences
The Repurchase Program has no set expiration date and may be suspended or discontinued at any time.
+Added: During the year ended December 31, 2025, the Company did no t repurchase any of its ordinary shares under the Repurchase Program.
During the year ended December 31, 2024, the Company repurchased approximately 7.9 million of its ordinary shares under the Repurchase Program at an average price of $ 25.33 per share, resulting in a total cost, exclusive of any fees, commissions or other expenses related to such repurchase of $ 200.0 million.
1 unchanged sentence
As of December 31, 2025, the remaining amount authorized under the Repurchase Program was $ 200.0 million.
−Removed: ALKERMES PLC AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
SHARE-BASED COMPENSATION
Share-Based Compensation Expense
−Removed: The following table presents share-based compensation expense from continuing and discontinued operations included in the Company’s consolidated statements of operations and comprehensive income (loss):
+Added: The following table presents share-based compensation expense from continuing and discontinued operations included in the Company’s consolidated statements of operations and comprehensive income:
Year Ended December 31,
4 unchanged sentences
Share-based compensation expense from continuing operations
−Removed: Cost of goods manufactured and sold
Research and development
2 unchanged sentences
Total share-based compensation expense
−Removed: During the years ended December 31, 2024, 2023 and 2022, $ 3.1 million, $ 3.2 million and $ 3.3 million, respectively, of share-based compensation expense was capitalized and recorded as “Inventory” in the accompanying consolidated balance sheets.
+Added: During the years ended December 31, 2025, 2024 and 2023, $ 3.2 million, $ 3.1 million and $ 3.2 million, respectively, of share-based compensation expense was capitalized and recorded as “Inventory” and $ 1.6 million, no ne and no ne, respectively, of share-based compensation expense was capitalized and recorded as “Other assets” in the accompanying consolidated balance sheets.
Share-Based Compensation Plans
4 unchanged sentences
Effective May 20, 2020, the 2018 Plan was amended such that any shares underlying any outstanding awards granted under the 2011 Plan or the 2008 Plan that are forfeited, canceled, repurchased or otherwise terminated (other than by exercise) from and after such date will become available for issuance pursuant to the 2018 Plan, notwithstanding anything to the contrary in the terms of the 2011 Plan or the 2008 Plan.
+Added: ALKERMES PLC AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The 2018 Plan allows for the issuance of non-qualified and incentive stock options, restricted stock, restricted stock unit awards, cash-based awards and performance shares to employees, officers and directors of, and consultants to, the Company in such amounts and with such terms and conditions as may be determined by the compensation committee of the Company’s board of directors, subject to the provisions of the 2018 Plan, as applicable.
9 unchanged sentences
Exercisable, December 31, 2025
−Removed: ALKERMES PLC AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The weighted average grant date fair value of stock options granted during the years ended December 31, 2025, 2024 and 2023 was $ 16.30 , $ 14.08 and $ 13.74 , respectively.
2 unchanged sentences
At December 31, 2025, the aggregate intrinsic value of stock options exercisable was $ 34.6 million with a weighted average remaining contractual term of 4.3 years.
−Removed: The number of stock options expected to vest was determined by applying the pre-vesting forfeiture rate to the total number of outstanding options.
+Added: The number of stock options expected to vest was determined by applying the pre-vesting forfeiture rate to the total number of outstanding unvested options.
The intrinsic value of a stock option is the amount by which the market value of the underlying shares exceeds the exercise price of the stock option.
8 unchanged sentences
At December 31, 2025, there was $ 59.8 million of total unrecognized share-based compensation expense related to unvested time-vesting RSUs, which will be recognized over a weighted average remaining contractual term of 1.9 years.
+Added: ALKERMES PLC AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Performance-Based Restricted Stock Unit Awards
5 unchanged sentences
The weighted average grant date fair values of performance-based RSUs granted during the years ended December 31, 2025, 2024 and 2023 were $ 40.15 , $ 32.46 and $ 29.91 , respectively.
−Removed: The total fair value of performance-based RSUs that vested during the years ended December 31, 2024, 2023 and 2022 were $ 10.1 million, $ 5.9 million and none , respectively.
−Removed: At December 31, 2024, there
−Removed: ALKERMES PLC AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
−Removed: was $ 3.0 million of unrecognized share-based compensation expense related to unvested performance-based RSUs which would be recognized in accordance with the terms of the awards when the Company deems it probable that the performance criteria will be met.
+Added: The total fair value of performance-based RSUs that vested during the years ended December 31, 2025, 2024 and 2023 were $ 8.2 million, $ 10.1 million and $ 5.9 million, respectively.
+Added: At December 31, 2025, there was $ 5.2 million of unrecognized share-based compensation expense related to unvested performance-based RSUs which would be recognized in accordance with the terms of the awards when the Company deems it probable that the performance criteria will be met.
During the year ended December 31, 2024, the Company recognized share-based compensation expense related to certain performance-based RSUs that were granted during 2021.
4 unchanged sentences
The share-based compensation expense related to these achievements was recognized in 2024.
+Added: DISCONTINUED OPERATIONS
+Added: Mural Oncology Separation
+Added: In November 2023, the Company completed the Separation.
+Added: In connection with the Separation, the Company entered into a separation agreement with Mural, dated as of November 13, 2023, that, among other things, set forth the Company’s agreements with Mural regarding the principal actions taken or to be taken in connection with the Separation, including the Distribution.
+Added: The separation agreement identified those assets to be transferred to, liabilities to be assumed by and contracts to be assigned to Mural as part of the Separation and it provided for when and how such transfers, assumptions and assignments were to occur.
+Added: The purpose of the separation agreement was to provide Mural and the Company with those assets necessary to operate their respective businesses and to retain or assume the respective liabilities related to those assets.
+Added: Each of Mural and the Company agreed to releases with respect to pre-Distribution claims, and cross-indemnities with respect to post-Distribution claims, that are principally designed to place financial responsibility for the obligations and liabilities allocated to Mural under the separation agreement with Mural, and financial responsibility for the obligations and liabilities allocated to the Company under the separation agreement with the Company.
+Added: The Company determined that the Separation and related Distribution qualified as tax-free for U.S.
+Added: federal income tax purposes, which required significant judgment by management.
+Added: In making such determinations, the Company applied U.S.
+Added: federal tax law to relevant facts and circumstances and obtained:
+Added: (i) a favorable private letter ruling from the IRS;
+Added: (ii) a tax opinion;
+Added: and (iii) other external tax advice related to the concluded tax treatment.
+Added: If the Separation and Distribution were to ultimately fail to qualify for tax-free treatment for U.S.
+Added: federal income tax purposes, the Company and/or its shareholders could be subject to significant liabilities, which could have material adverse impacts on the Company’s business, financial condition, results of operations and cash flows in
+Added: ALKERMES PLC AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+Added: future reporting periods.
+Added: Furthermore, other than taxes recorded on the transfer of intellectual property, the Company determined that the Separation and related Distribution qualified as tax-free for Irish tax purposes, which required significant judgment by management.
+Added: In making such determinations, the Company applied Irish tax law to relevant facts and circumstances and obtained:
+Added: (i) a tax opinion;
+Added: and (ii) other external tax advice related to the concluded tax treatment.
+Added: If the Separation and Distribution were to ultimately fail to qualify for tax-free treatment for Irish tax purposes, the Company and/or its shareholders could be subject to significant liabilities, which could have material adverse impacts on the Company’s business, financial condition, results of operations and cash flows in future reporting periods.
+Added: In connection with the Separation, the Company also entered into a tax matters agreement with Mural, dated as of November 13, 2023 .
+Added: The tax matters agreement governs the Company’s and Mural’s respective rights, responsibilities and obligations with respect to taxes (including taxes arising in the ordinary course of business and taxes, if any, incurred as a result of any failure of the Distribution, together with certain related transactions, to qualify as tax-free for U.S.
+Added: federal income tax purposes), tax attributes, the preparation and filing of tax returns, the control of audits and other tax proceedings, and assistance and cooperation in respect of tax matters.
+Added: Discontinued Operations
+Added: The results of the former oncology business and transaction costs related to the Separation have been reflected as “Loss from discontinued operations, net of taxes” in the accompanying consolidated statement of operations and comprehensive income through the Separation Date in November 2023.
+Added: The transaction costs related to the Separation were $ 36.0 million during 2023, primarily related to professional fees for separation activities within the finance, tax, legal and information technology functions.
+Added: The following table summarizes expenses of the discontinued operations for the years ended December 31, 2024 and 2023:
+Added: Year Ended December 31,
+Added: (In thousands)
+Added: Operating expenses from discontinued operations
+Added: Cost of goods manufactured
+Added: Research and development
+Added: Selling, general and administrative
+Added: Total operating expenses from discontinued operations
+Added: Operating loss from discontinued operations
+Added: Income tax benefit from discontinued operations
+Added: Net loss and comprehensive loss from discontinued operations
+Added: The following table summarizes the significant non-cash items and capital expenditures of the discontinued operations that are included in the consolidated statements of cash flows for the year ended December 31, 2023:
+Added: Year Ended December 31,
+Added: (In thousands)
+Added: OPERATING ACTIVITIES:
+Added: Share-based compensation expense
+Added: Right-of-use assets
+Added: Operating lease liabilities
+Added: INVESTING ACTIVITIES:
+Added: Additions of property, plant and equipment
COLLABORATIVE ARRANGEMENTS
2 unchanged sentences
The collaboration revenue the Company has earned in the years ended December 31, 2025, 2024 and 2023 is summarized in Note 3, Revenue from Contracts with Customers within the notes to the consolidated financial statements in this Annual Report.
+Added: ALKERMES PLC AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The Company’s significant collaborative arrangements are described below:
4 unchanged sentences
The patent royalty, which equals 1.5 % of net sales, is payable in each country until the expiration of the last of the patents with valid claims applicable to the product in such country.
+Added: As of August 30, 2024 , all patent royalties had expired.
The know-how royalty is a tiered royalty of 3.5 %, 5.5 % and 7.5 % on aggregate worldwide net sales of below $ 250 million, between $ 250 million and $ 500 million, and greater than $ 500 million, respectively.
13 unchanged sentences
Under the development agreement, Janssen provided funding to the Company for the development of RISPERDAL CONSTA and Janssen is responsible for securing all necessary regulatory approvals for the product.
−Removed: ALKERMES PLC AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Under two license agreements, the Company granted Janssen and an affiliate of Janssen exclusive worldwide licenses to use and sell RISPERDAL CONSTA.
13 unchanged sentences
Janssen may terminate the agreement upon six months ’ written notice to the Company.
−Removed: In the event that Janssen terminates the manufacturing and supply agreement without terminating the license agreements, the royalty rate payable to the Company on Janssen’s net sales of RISPERDAL CONSTA would increase from 2.5 % to 5.0 %.
+Added: In the event that Janssen
+Added: ALKERMES PLC AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+Added: terminates the manufacturing and supply agreement without terminating the license agreements, the royalty rate payable to the Company on Janssen’s net sales of RISPERDAL CONSTA would increase from 2.5 % to 5.0 %.
Under a license and collaboration agreement with Biogen, the Company granted Biogen a worldwide, exclusive, sublicensable license to develop, manufacture and commercialize VUMERITY and other products covered by patents licensed to Biogen under the agreement.
5 unchanged sentences
Royalties for all products are subject to customary reductions, as set forth in the license and collaboration agreement.
−Removed: Following FDA approval of VUMERITY and, except for the manufacturing responsibilities discussed below, Biogen is now responsible for all development and commercialization activities for VUMERITY and all other products covered by the patents that we licensed to Biogen.
+Added: Following FDA approval of VUMERITY in 2019, Biogen is responsible for all development and commercialization activities for VUMERITY and all other products covered by the patents that we licensed to Biogen.
Under the license and collaboration agreement, Biogen appointed the Company as the toll manufacturer of clinical and commercial supplies of VUMERITY, subject to Biogen’s right to manufacture or have manufactured commercial supplies as a back-up manufacturer.
−Removed: In October 2019, the Company entered into a commercial supply agreement with Biogen for the commercial supply of VUMERITY, an amendment to such commercial supply agreement and an amendment to the license and collaboration agreement with Biogen, pursuant to which Biogen has conducted a technology transfer and, following an agreed transition period, has elected to assume responsibility for the manufacture (itself or through a designee) of clinical and commercial supplies of VUMERITY in exchange for an increase in the royalty rate to be paid by Biogen to the Company on net sales of product that is manufactured by Biogen or its designee.
−Removed: In May 2024, the Company completed the sale of the Athlone Facility where VUMERITY is manufactured.
−Removed: In connection with the sale of the Athlone Facility, the Company has entered into a subcontracting arrangement with the purchaser of the Athlone Facility for the manufacture of VUMERITY through the manufacturing transition period, which may continue through the end of 2025.
−Removed: ALKERMES PLC AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+Added: In October 2019, the Company entered into a commercial supply agreement with Biogen for the commercial supply of VUMERITY, an amendment to such commercial supply agreement and an amendment to the license and collaboration agreement with Biogen, pursuant to which Biogen has, following a completed technology transfer and an agreed manufacturing transition period, assumed all responsibility for the manufacture (itself or through a designee) of clinical and commercial supplies of VUMERITY in exchange for an increase in the royalty rate to be paid by Biogen to the Company on net sales of product that is manufactured by Biogen or its designee.
+Added: In May 2024, the Company completed the sale of the Athlone Facility where VUMERITY was manufactured.
+Added: In connection with the sale of the Athlone Facility, the Company entered into a subcontracting arrangement with the purchaser of the Athlone Facility for the manufacture of VUMERITY through the manufacturing transition period, which concluded in August 2025.
Unless earlier terminated, the license and collaboration agreement will remain in effect until the expiry of all royalty obligations.
6 unchanged sentences
Current income tax provision (benefit):
+Added: Domestic - Ireland
+Added: Foreign - U.S.
+Added: Total current income tax provision (benefit)
Deferred income tax provision (benefit):
−Removed: Total tax provision (benefit)
−Removed: (1) Prior period amounts have been retrospectively adjusted to reflect the effects of the Separation.
−Removed: The income tax provision in 2024 was primarily due to taxes on income earned in Ireland.
+Added: Domestic - Ireland
+Added: Foreign - U.S.
+Added: Total deferred income tax provision (benefit)
+Added: Total income tax provision (benefit)
+Added: ALKERMES PLC AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+Added: The income tax provisions in 2025 and 2024 were primarily due to taxes on income earned in Ireland.
The income tax benefit in 2023 was primarily due to the partial release of the valuation allowance maintained against certain Irish deferred tax assets, partially offset by taxes on income earned in the U.S.
−Removed: The income tax expense in 2022 was primarily due to taxes on income earned in the U.S.
In December 2022, the EU implemented a new corporate minimum tax rate of 15 % on companies with consolidated annual revenue of at least € 750.0 million, which was transposed into Irish law effective as of January 1, 2024.
−Removed: The Company has determined that this new minimum tax had no material impact for the year ended December 31, 2024.
+Added: The Company has determined that this new minimum tax had no material impact for the years ended December 31, 2025 and 2024.
The income tax benefit associated with the Company’s former oncology business, and the tax impact of the Separation, are discussed in further detail in Note 15, Discontinued Operations, in these “Notes to Consolidated Financial Statements” in this Annual Report.
−Removed: The tax benefits included within discontinued operations were $ 0.7 million, $ 1.4 million, and $ 11.1 million for the years ended December 31, 2024, 2023, and 2022, respectively.
+Added: The tax benefits included within discontinued operations were $ 0.7 million, and $ 1.4 million for the years ended December 31, 2024, and 2023, respectively.
No provision for income tax has been provided on undistributed earnings of the Company’s foreign subsidiaries because such earnings are indefinitely reinvested in the foreign operations.
3 unchanged sentences
The Company estimates that approximately $ 70.0 million of income taxes would be payable on the repatriation of the unremitted earnings to Ireland.
−Removed: The distribution of the Company’s income (loss) before the provision (benefit) for income taxes by geographical area consists of the following:
+Added: The distribution of the Company’s income before the provision (benefit) for income taxes by geographical area consists of the following:
Year Ended December 31,
(In thousands)
−Removed: Income (loss) from continuing operations before provision (benefit) for income taxes
−Removed: (1) Prior period amounts have been retrospectively adjusted to reflect the effects of the Separation.
−Removed: ALKERMES PLC AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+Added: Domestic - Ireland
+Added: Foreign - U.S.
+Added: Income from continuing operations before provision (benefit) for income taxes
The components of the Company’s net deferred tax assets consist of the following:
1 unchanged sentence
Deferred tax assets:
−Removed: Net operating loss carryforwards
−Removed: Research and development expenses
−Removed: Accrued expenses and reserves
−Removed: Operating lease liabilities
+Added: Net Operating Loss ("NOL") carryforwards
Share-based compensation
+Added: Accrued expenses and reserves
+Added: Research and development expenses
+Added: Lease liability
valuation allowance
2 unchanged sentences
Property, plant and equipment
−Removed: Right-of-use assets
+Added: Right-to-use asset
Total deferred tax liabilities
Net deferred tax assets
+Added: ALKERMES PLC AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The activity in the valuation allowance associated with deferred taxes consists of the following:
6 unchanged sentences
Deferred tax asset valuation allowance for the year ended December 31, 2025
−Removed: (1) Inclusive of continuing and discontinued operations for the periods prior to the Separation in November 2023.
+Added: (1) The beginning balance as of January 1, 2023 is inclusive of continuing and discontinued operations.
(2) (Additions) reductions represent continuing and discontinued operations for the periods prior to the Separation in November 2023.
+Added: The additions during the year ended December 31, 2025 primarily relate to the realization of Irish capital losses on foreign exchange transactions.
The reductions during the year ended December 31, 2024 primarily relate to the abandonment of certain Irish NOLs following the sale of the Athlone Facility to Novo.
3 unchanged sentences
The reduction during the year ended December 31, 2023 primarily relates to the partial release of the valuation allowance maintained by the Company against certain Irish net deferred tax assets.
−Removed: The additions in 2022 relate primarily to Irish NOLs.
The Company regularly assesses the need for a valuation allowance against its deferred tax assets.
12 unchanged sentences
in November 2019, each of which are subject to a $ 0.5 million annual limitation.
−Removed: ALKERMES PLC AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
A reconciliation of the Company’s statutory tax rate to its effective tax rate is as follows:
2 unchanged sentences
Statutory tax rate
−Removed: Income (loss) from continuing operations before income taxes at statutory rate
+Added: Foreign tax effects—U.S.
+Added: State and local income tax, net of federal income tax effect
+Added: Research and Development
+Added: Nontaxable or nondeductible items
Share-based compensation
−Removed: Foreign rate differential (2)
−Removed: Change in valuation allowance
−Removed: Intercompany amounts (3)
−Removed: Irish rate differential (4)
−Removed: Uncertain tax positions
−Removed: Non-deductible lobbying expenses
−Removed: state income taxes, net of U.S.
−Removed: federal benefit
−Removed: Foreign derived intangible income
−Removed: Abandonment of NOLs (5)
−Removed: Other permanent items (6)
−Removed: Income tax provision (benefit)
−Removed: Effective tax rate
−Removed: (1) Prior period amounts have been retrospectively adjusted to reflect the effects of the Separation.
−Removed: (2) Represents income or losses of U.S.
−Removed: subsidiaries, subject to tax at a rate other than the Irish statutory rate.
−Removed: (3) Intercompany amounts include cross-territory eliminations, the pre-tax effect of which has been eliminated in arriving at the Company's consolidated income (loss) before taxes from continuing operations.
−Removed: In 2023, this included a tax benefit of $ 15.7 million related to the intercompany transfer of inventory that was owned by the Company at December 31, 2023.
−Removed: (4) Represents income or losses of Irish companies subject to tax at a rate other than the Irish statutory rate.
−Removed: (5) Represents the tax effect of the abandonment of Irish NOLs following the sale of the Athlone Facility to Novo.
−Removed: (6) Other permanent items include, but are not limited to, non-deductible meals and entertainment expenses and non-deductible compensation of senior officers of the Company.
−Removed: For the year ended December 31, 2024, permanent items also included amounts relating to the sale of the Athlone Facility.
+Added: Changes in valuation allowances
+Added: Nontaxable or nondeductible items
+Added: Nonoperating income
+Added: Worldwide changes in unrecognized tax benefits
+Added: (1) Other items include, but are not limited to, foreign valuation allowance, foreign rate differential, non-deductible meals and entertainment expenses, non-deductible lobbying expenses, and non-deductible compensation of senior officers of the Company.
+Added: (2) Other items include, but are not limited to non-deductible transaction costs and non-deductible compensation.
+Added: For the year ended December 31, 2024, other items also included amounts relating to the sale of the Athlone Facility.
+Added: ALKERMES PLC AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
14 unchanged sentences
The unrecognized tax benefits at December 31, 2025, if recognized, would affect the Company’s effective tax rate.
−Removed: The Company does not anticipate that the amount of existing unrecognized tax benefits will materially increase or decrease within the next 12 months.
The Company has elected to include interest and penalties related to uncertain tax positions as a component of its provision for taxes.
−Removed: For the years ended December 31, 2024, 2023 and 2022, the Company’s accrued interest and penalties related to uncertain tax positions were not material.
−Removed: ALKERMES PLC AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+Added: For the years ended December 31, 2025, 2024 and 2023, the Company’s accrued interest and penalties related to uncertain tax positions were $ 1.0 million, $ 0.1 million and $ 0.3 million, respectively.
The Company’s major taxing jurisdictions include Ireland and the U.S.
6 unchanged sentences
These years generally remain open for three to four years after the loss carryforwards and credit carryforwards have been utilized.
+Added: For the years ended December 31, 2025, 2024, and 2023, the Company paid cash for income taxes, net of refunds received, of $ 5.2 million, $ 2.6 million, and $ 44.2 million, respectively.
+Added: A reconciliation of the Company’s cash paid for income taxes, net of refunds received, is as follows:
+Added: Year Ended December 31,
+Added: (In thousands)
+Added: Domestic - Ireland
+Added: Foreign - U.S.
+Added: Foreign - U.S.
+Added: Below the disclosure threshold for the period presented.
+Added: This number includes amounts due to the Company under other tax heads that was reallocated to the income tax account.
+Added: ALKERMES PLC AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
SEGMENT REPORTING
Segment Information
−Removed: Following the adoption of ASU 2023-07, the Company is required to disclose significant segment expenses that are regularly provided to the CODM.
−Removed: The Company’s CODM is periodically provided R&D expenses, selling and marketing expenses, and general and administrative expenses.
−Removed: Other external R&D expenses are composed of general research and development expenses and other external projects.
−Removed: Other internal R&D expenses include allocation expenses, travel expenses, and fees, taxes and dues.
−Removed: The Company’s significant segment expenses are as follows:
+Added: The Company’s significant segment expenses that are regularly provided to the CODM are as follows:
Year Ended December 31,
14 unchanged sentences
Total selling, general and administrative expense
−Removed: Other segment (expenses) income (1)
−Removed: NET INCOME (LOSS) FROM CONTINUING OPERATIONS
+Added: Other segment (expense) income (1)
+Added: NET INCOME FROM CONTINUING OPERATIONS
LOSS ON DISCONTINUED OPERATIONS, NET OF TAX
−Removed: NET INCOME (LOSS)
−Removed: (1) “Other segment (expenses) income” during the years ended December 31, 2024, 2023 and 2022 includes “Amortization of acquired intangible assets”, “Other income (loss), net” and “Income tax provision (benefit)”.
−Removed: ALKERMES PLC AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+Added: (1) “Other segment (expense) income” during the years ended December 31, 2025, 2024 and 2023 includes “Amortization of acquired intangible assets”, “Other income (expense), net” and “Income tax provision (benefit)”.
COMMITMENTS AND CONTINGENT LIABILITIES
6 unchanged sentences
INVEGA TRINZA ANDA Litigation
−Removed: In September 2020, Janssen Pharmaceutica, Janssen Pharmaceuticals, Inc., and Janssen Research & Development, LLC initiated a patent infringement lawsuit in the NJ District Court against Mylan Labs, Mylan, and Mylan Institutional LLC following the filing by Mylan Labs of an ANDA seeking approval from the FDA to market a generic version of INVEGA TRINZA before the expiration of U.S.
+Added: In September 2020, Janssen Pharmaceutica, Janssen Pharmaceuticals, Inc., and Janssen Research & Development, LLC initiated a patent infringement lawsuit in the U.S.
+Added: District Court for the District of New Jersey (the “NJ District Court”) against Mylan Laboratories Limited (“Mylan Labs”) and other Mylan entities following the filing by Mylan Labs of an abbreviated new drug application (“ANDA”) seeking approval from the U.S.
+Added: Food and Drug Administration (“FDA”) to market a generic version of
+Added: ALKERMES PLC AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+Added: INVEGA TRINZA before the expiration of U.S.
10,143,693 (the “’693 Patent”).
1 unchanged sentence
In May 2023, the NJ District Court issued an opinion in favor of the Janssen entities on the issues of infringement and validity of the ’693 Patent and the Mylan entities filed a notice of appeal of the decision.
−Removed: The Company is not a party to this proceeding.
−Removed: VUMERITY ANDA Litigation
−Removed: In July 2023, Biogen Inc., Biogen Swiss Manufacturing GmbH and Alkermes Pharma Ireland Limited filed a patent infringement lawsuit in the DE District Court against Zydus Worldwide DMCC, Zydus Pharmaceuticals (USA) Inc.
−Removed: and Zydus Lifesciences Limited (collectively, “Zydus”) following the filing by Zydus of an ANDA seeking approval from the FDA to engage in the commercial manufacture, use or sale of a generic version of VUMERITY (diroximel fumarate) delayed-release capsules for oral use, 231 mg, before expiration of the Company’s U.S.
−Removed: and 10,080,733.
−Removed: The filing of the lawsuit triggered a stay of FDA approval of the ANDA for up to 30 months in accordance with the U.S.
+Added: In March 2025, the U.S.
+Added: Court of Appeals for the Federal Circuit (the “Federal Circuit Court”) issued a decision affirming the NJ District Court opinion.
+Added: In May 2025, Mylan Labs filed a petition for panel rehearing or rehearing en banc, and in July 2025, the petition was denied and the Federal Circuit Court issued a mandate to the NJ District Court which terminated the proceeding.
+Added: The Company was not a party to this proceeding.
+Added: LYBALVI ANDA Litigation
+Added: In August 2025, Alkermes Pharma Ireland Limited (“APIL”) and Alkermes, Inc., two wholly-owned subsidiaries of the Company, filed a patent infringement lawsuit against Teva (as defined herein) in the NJ District Court and a patent infringement lawsuit against Apotex in each of the NJ District Court and the U.S.
+Added: District Court for the District of Delaware.
+Added: In September 2025, APIL and Alkermes, Inc.
+Added: filed a patent infringement lawsuit against MSN (as defined herein) in the NJ District Court.
+Added: As used herein, Teva refers to Teva Pharmaceuticals, Inc., Apotex refers to Apotex Inc.
+Added: and Apotex Corp., and MSN refers to MSN Laboratories Private Limited (“MSN Labs”), MSN Pharmaceuticals, Inc.
+Added: and Novadoz Pharmaceuticals LLC.
+Added: These lawsuits were filed following receipt of a “paragraph IV certification” notice from each of Teva, Apotex and MSN Labs regarding their respective filings of an ANDA with the FDA seeking approval to engage in the commercial manufacture, use or sale of a generic version of LYBALVI (olanzapine and samidorphan tablets, 5mg/10mg, 10mg/10mg, 15mg/10mg and 20mg/10mg) in the U.S.
+Added: prior to the expiration of certain of the Company’s U.S.
+Added: The notices alleged that certain of the Company’s patents related to LYBALVI, with expiration dates between 2032 and 2041, are invalid, unenforceable and/or will not be infringed by the commercial manufacture, use or sale of the proposed generic products.
+Added: The Company intends to vigorously defend its intellectual property.
+Added: The filing of each lawsuit within 45 days of receipt of each of the respective notices triggered stays of FDA approval of each of the respective ANDAs for up to 30 months in accordance with the U.S.
Drug Price Competition and Patent Term Restoration Act of 1984 (the “Hatch-Waxman Act”).
−Removed: A bench trial is scheduled to begin on July 28, 2025.
+Added: Antitrust Class Action Litigation
+Added: On October 2, 2025, Value Drug Company filed a complaint asserting antitrust claims against Alkermes, Inc.
+Added: and APIL in the U.S.
+Added: District Court for the District of Massachusetts (the “MA District Court”).
+Added: The complaint was filed on behalf of a putative class of direct purchasers of VIVITROL and alleges that the Company’s U.S.
+Added: 7,919,499 related to VIVITROL was fraudulently obtained, improperly listed in the Orange Book, and wrongfully enforced, resulting in delayed market entry for generic forms of VIVITROL.
+Added: The lawsuit seeks, among other things, unspecified money damages plus interest, reasonable attorneys’ fees and other costs.
+Added: The Company intends to vigorously defend itself in this matter.
+Added: On December 19, 2025, Alkermes, Inc.
+Added: and APIL filed a motion to dismiss the complaint with the MA District Court.
Government Matters
−Removed: The Company has received a subpoena and civil investigative demands from U.S.
−Removed: state and federal governmental authorities for documents related to VIVITROL.
−Removed: The Company is cooperating with the investigations.
+Added: The Company has received a civil investigative demand from a U.S.
+Added: state governmental authority.
+Added: The Company is cooperating with the investigation.
Product Liability and Other Legal Proceedings
−Removed: The Company is involved in litigation and other legal proceedings incidental to its normal business activities, including a product liability case alleging that the FDA-approved VIVITROL labeling was inadequate and that VIVITROL caused the individual to suffer from opioid overdose and death.
+Added: The Company is involved in litigation and other legal proceedings incidental to its normal business activities.
The Company intends to vigorously defend itself in these matters.
−Removed: In addition, in January 2023, Acorda filed a petition with the U.S.
+Added: In addition, in January 2023, Acorda Therapeutics, Inc.
+Added: (“Acorda”) filed a petition with the U.S.
District Court for the Southern District of New York (the “NY Southern District Court”) asking the court to confirm in part and modify in part the final arbitral award rendered by an arbitration panel in October 2022 and, as part of the requested modification, seeking an additional approximately $ 66.0 million in damages.
In August 2023, the NY Southern District Court confirmed the final arbitral award and declined to modify the final award to increase the damages awarded thereunder.
−Removed: In September 2023, Acorda filed a notice of appeal of the NY Southern District Court decision to the U.S.
−Removed: Court of Appeals for the Federal Circuit (the “Federal Circuit Court”), and the Company filed a motion to transfer the appeal to the U.S.
+Added: In September 2023, Acorda filed a notice of appeal of the NY Southern District Court decision to the Federal Circuit Court.
+Added: In July 2025, the Federal Circuit Court transferred the appeal due to lack of jurisdiction to the U.S.
Court of Appeals for the Second Circuit.
−Removed: In January 2024, the Federal Circuit Court denied without prejudice the Company’s motion to transfer the appeal and instructed the parties to brief the jurisdictional question as part of the merits appeal.
−Removed: Briefing in the Federal Circuit Court is complete, and the matter is pending decision.
−Removed: ALKERMES PLC AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
−Removed: In connection with the Separation, the Company entered into the Assignment related to the 852 Winter Street Lease, which is described in more detail in Note 10, Leases in these “Notes to Consolidated Financial Statements” in this Annual Report.
−Removed: Although the Assignment transferred all of the rights, title and interest in, to and under the 852 Winter Street Lease to Mural US as of November 15, 2023, the Company ratified and reaffirmed for the remainder of the lease term its guarantor obligations under that certain Guaranty dated as of May 16, 2014 related to the 852 Winter Street Lease.
−Removed: Upon completion of the Separation, the Assignment was accounted for as a termination of the original lease and the Company de-recognized the right-of-use asset and lease liability related to the 852 Winter Street Lease.
−Removed: At December 31, 2024, the fair value of the guarantee was no t material to the Company.
Purchase Commitments
2 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.