Alkermes plc. 10-K

Item 9A. Controls and Procedures Disclosure Controls and Procedures and Internal Control Over Financial Reporting Controls and Procedures Our management has evaluated, with the participation of our principal executive officer and principal financial officer, the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act), as of December 31, 2025. Based upon that evaluation, our principal executive officer and principal financial officer concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective to provide reasonable assurance that (a) the information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and (b) such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure. In designing and evaluating our disclosure controls and procedures, our management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Changes in Internal Control over Financial Reporting There were no changes in our internal control over financial reporting during the quarter ended December 31, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Management’s Annual Report on Internal Control over Financial Reporting Our management is responsible for establishing and maintaining adequate internal control over our financial reporting as defined in Rules 13a-15(f) and 15d-15(f). Internal control over financial reporting is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act as a process designed by, or under the supervision of, the issuer’s principal executive and principal financial officers, or persons performing similar functions, and effected by the issuer’s board of directors, management and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP and includes those policies and procedures that: • pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect our transactions and dispositions of the assets of the issuer; • provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that receipts and expenditures of the issuer are being made only in accordance with authorizations of management and directors of the issuer; and • provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the issuer’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness for future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Our management assessed the effectiveness of our internal control over financial reporting as of December 31, 2025. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in its 2013 Internal Control—Integrated Framework. Based on this assessment, our management has concluded that, as of December 31, 2025, our internal control over financial reporting was effective. The effectiveness of our internal control over financial reporting as of December 31, 2025 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report, which is included in this Annual Report, beginning on page F-1. 76 Item 9B. Other Information Trading Plans 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: (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; this plan is scheduled to expire on December 31, 2026 ; (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; this plan is scheduled to expire on February 17, 2027 ; (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; this plan is scheduled to expire on February 27, 2026 ; (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; this plan is scheduled to expire on December 31, 2026 ; 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; this plan is scheduled to expire on February 27, 2026 . 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. Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections Not applicable. 77 PART III Item 10. Directors, Executive Of ficers and Corporate Governance The information required by this item is incorporated herein by reference to our definitive proxy statement for our 2026 annual general meeting of shareholders. We expect this information will be provided under sections of the proxy statement entitled “Proposal 1—Election of Directors,” “The Role of the Board and Its Committees,” “Executive Officers,” “Other Corporate Governance Matters” and “Board Nominations, Evaluations and Refreshment” and, if required, “Delinquent Section 16(a) Reports”. Item 11. Executi ve Compensation The information required by this item (excluding, for clarity, the information required by Item 402(v) of Regulation S-K) is incorporated herein by reference to our definitive proxy statement for our 2026 annual general meeting of shareholders. We expect this information will be provided under sections of the proxy statement entitled “The Role of the Board and Its Committees,” “Director Compensation,” “Executive Compensation—Compensation Discussion and Analysis,” “Executive Compensation Tables,” “Additional Compensation Information,” “Compensation Committee Report” and “Pay Ratio”. Item 12. Security Ownership of Certa in Beneficial Owners and Management and Related Stockholder Matters The information required by this item is incorporated herein by reference to our definitive proxy statement for our 2026 annual general meeting of shareholders. We expect this information will be provided under sections of the proxy statement entitled “Ownership of the Company’s Ordinary Shares” and “Equity Compensation Plan Information”. Item 13. Certain Relationships and Relate d Transactions, and Director Independence The information required by this item is incorporated herein by reference to our definitive proxy statement for our 2026 annual general meeting of shareholders. 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”. Item 14. 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. We expect this information will be provided under a section of the proxy statement entitled “Audit Fees”. 78 PART IV Item 15. Exhibits and Fina ncial Statement Schedules (a)(1) Consolidated Financial Statements—The consolidated financial statements of Alkermes plc, as required by this item, are submitted in a separate section beginning on page F-1 of this Annual Report, as follows: Financial Statement Page Number Report of Independent Registered Public Accounting Firm (PCAOB ID: 238 ) F- 1 Consolidated Balance Sheets F- 3 Consolidated Statements of Operations and Comprehensive Income F- 4 Consolidated Statements of Shareholders’ Equity F- 5 Consolidated Statements of Cash Flows F- 6 Notes to the Consolidated Financial Statements F- 7 (2) Financial Statement Schedules—All schedules have been omitted because the absence of conditions under which they are required or because the required information is included in the consolidated financial statements or notes thereto. (3) The exhibits listed in the below Exhibit Index are filed or furnished as part of this Annual Report or are incorporated into this Annual Report by reference. EXHIBIT INDEX Incorporated by reference herein Exhibit No. Description of Exhibit Form Date 2.1 § 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. 001-35299) November 15, 2023 2.2 § 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. 001-35299) October 22, 2025 2.2A Amendment No. 1 to the Transaction Agreement, dated as of November 18, 2025, by and between Alkermes plc and Avadel Pharmaceuticals plc. Exhibit 2.1 to the Alkermes plc Current Report on Form 8-K (File No. 001-35299) November 19, 2025 2.2B Appendix III to the Rule 2.7 Announcement, dated as of October 22, 2025 (Conditions Appendix). Exhibit 2.2 to the Alkermes plc Current Report on Form 8-K (File No. 001-35299) October 22, 2025 3.1 Memorandum and Articles of Association of Alkermes plc. Exhibit 3.1 to the Alkermes plc Quarterly Report on Form 10-Q (File No. 001-35299) May 1, 2024 4.1 # Description of Securities. 10.1 Lease, dated March 23, 2018, by and between Alkermes, Inc. and PDM 900 Unit, LLC. Exhibit 10.4 to the Alkermes plc Quarterly Report on Form 10-Q (File No. 011-35299) April 26, 2018 10.1A First Amendment to Lease, dated June 21, 2018, by and between Alkermes, Inc. and PDM 900 Unit, LLC. Exhibit 10.2 to the Alkermes plc Quarterly Report on Form 10-Q (File No. 001-35299) July 26, 2018 10.1B Second Amendment to Lease, dated May 10, 2019, by and between Alkermes, Inc. and PDM 900 Unit, LLC. Exhibit 10.2 to the Alkermes plc Quarterly Report on Form 10-Q (File No. 001-35299) July 25, 2019 10.2 License Agreement, dated as of February 13, 1996, between Medisorb Technologies International L.P. and Janssen Pharmaceutica Inc. (United States) (assigned to Alkermes, Inc. in July 2006). Exhibit 10.2 to the Alkermes plc Annual Report on Form 10-K (File No. 001-35299) February 25, 2016 10.2A * 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. and Exhibit 10.5 to the Alkermes, Inc. Quarterly Report on Form 10-Q (File No. 001-14131) February 8, 2005 79 Incorporated by reference herein Exhibit No. Description of Exhibit Form Date Alkermes Controlled Therapeutics Inc. II, dated April 1, 2000 (assigned to Alkermes, Inc. in July 2006). 10.2B * 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. and Janssen Pharmaceutica Inc. and the License Agreement, dated as of February 21, 1996, as amended, by and between Alkermes, Inc. and JPI Pharmaceutica International, and the Fifth Amendment, dated as of August 16, 2012, to the Manufacturing and Supply Agreement, dated as of August 6, 1997, as amended, by and between Alkermes, Inc., Janssen Pharmaceutica Inc. and JPI Pharmaceutica International. Exhibit 10.3 to the Alkermes plc Quarterly Report on Form 10-Q (File No. 001-35299) November 1, 2012 10.3 License Agreement, dated as of February 21, 1996, between Medisorb Technologies International L.P. and Janssen Pharmaceutica International (worldwide except United States) (assigned to Alkermes, Inc. in July 2006). Exhibit 10.3 to the Alkermes plc Annual Report on Form 10-K (File No. 001-35299) February 25, 2016 10.4 Manufacturing and Supply Agreement, dated August 6, 1997, by and among JPI Pharmaceutica International, Janssen Pharmaceutica, Inc. and Alkermes Controlled Therapeutics Inc. II (assigned to Alkermes, Inc. in July 2006). Exhibit 10.4 to the Alkermes plc Annual Report on Form 10-K (File No. 001-35299) February 25, 2016 10.4A * Fourth Amendment to Development Agreement and First Amendment to Manufacturing and Supply Agreement by and between Janssen Pharmaceutica International, Janssen Pharmaceutica Products, L.P. and Alkermes Controlled Therapeutics Inc. II, dated December 20, 2000 (assigned to Alkermes, Inc. in July 2006). Exhibit 10.4 to the Alkermes, Inc. Quarterly Report on Form 10-Q (File No. 001-14131) February 8, 2005 10.4B Addendum to the Manufacturing and Supply Agreement by and among JPI Pharmaceutica International, Janssen Pharmaceutica Inc. and Alkermes Controlled Therapeutics Inc. II, dated August 1, 2001. Exhibit 10.4.2 to the Alkermes plc Annual Report on Form 10-K (File No. 001-35299) February 25, 2016 10.4C Letter Agreement and Exhibits to Manufacturing and Supply Agreement, dated February 1, 2002, by and among JPI Pharmaceutica International, Janssen Pharmaceutica Inc. and Alkermes Controlled Therapeutics Inc. II (assigned to Alkermes, Inc. in July 2006). Exhibit 10.4.3 to the Alkermes plc Annual Report on Form 10-K (File No. 001-35299) February 25, 2016 10.4D * Amendment to Manufacturing and Supply Agreement by and between JPI Pharmaceutica International, Janssen Pharmaceutica Inc. and Alkermes Controlled Therapeutics Inc. II, dated December 22, 2003 (assigned to Alkermes, Inc. in July 2006). Exhibit 10.6 to the Alkermes plc Quarterly Report on Form 10-Q (File No. 011-35299) July 30, 2015 10.4E * Fourth Amendment to Manufacturing and Supply Agreement by and between JPI Pharmaceutica International, Janssen Pharmaceutica Inc. and Alkermes Controlled Therapeutics Inc. II, dated January 10, 2005 (assigned to Alkermes, Inc. in July 2006). Exhibit 10.9 to the Alkermes, Inc. Quarterly Report on Form 10-Q (File No. 001-14131) February 8, 2005 10.4F * Sixth Amendment to Manufacturing and Supply Agreement by and between JPI Pharmaceutica International, Janssen Pharmaceutica Inc. and Alkermes Controlled Therapeutics Inc. II (assigned to Alkermes, Inc. in July 2006), effective as of July 1, 2018. Exhibit 10.11 to the Alkermes plc Quarterly Report on Form 10-Q (File No. 011-35299) October 23, 2018 10.5 * Agreement by and between JPI Pharmaceutica International, Janssen Pharmaceutica Inc. and Alkermes Controlled Therapeutics Inc. II, dated December 21, 2002 (assigned to Alkermes, Inc. in July 2006). Exhibit 10.6 to the Alkermes, Inc. Quarterly Report on Form 10-Q (File No. 001-14131) February 8, 2005 10.5A * Amendment to Agreement by and between JPI Pharmaceutica International, Janssen Pharmaceutica Inc. and Alkermes Controlled Therapeutics Inc. II, dated December 16, 2003 (assigned to Alkermes, Inc. in July 2006). Exhibit 10.7 to the Alkermes, Inc. Quarterly Report on Form 10-Q (File No. 001-14131) February 8, 2005 80 Incorporated by reference herein Exhibit No. Description of Exhibit Form Date 10.6 ** License Agreement by and among Elan Pharmaceutical Research Corp., d/b/a Nanosystems and Elan Pharma International Limited and Janssen Pharmaceutica N.V. dated as of March 31, 1999. Exhibit 10.1 to the Alkermes plc Quarterly Report on Form 10-Q (File No. 001-35299) April 26, 2023 10.6A First Amendment, dated as of July 31, 2003, to the License Agreement by and among Elan Drug Delivery, Inc. (formerly Elan Pharmaceutical Research Corp.) and Elan Pharma International Limited and Janssen Pharmaceutica NV dated March 31, 1999. Exhibit 10.24 to the Alkermes plc Annual Report on Form 10-K (File No. 001-35299) May 23, 2013 10.6B ** Agreement Amendment No. 2, dated as of July 31, 2009, to the License Agreement by and among Elan Pharmaceutical Research Corp., d/b/a Nanosystems and Elan Pharma International Limited and Janssen Pharmaceutica N.V. dated as of March 31, 1999, as amended by the First Amendment, dated as of July 31, 2003. Exhibit 10.2 to the Alkermes plc Quarterly Report on Form 10-Q (File No. 001-35299) April 26, 2023 10.7 * License and Collaboration Agreement, dated November 27, 2017, by and between Alkermes Pharma Ireland Limited and Biogen International GmbH (as successor to Biogen Swiss Manufacturing GmbH). Exhibit 10.10 to the Alkermes plc Annual Report on Form 10-K (File No. 011-35299) February 16, 2018 10.7A * First Amendment to License and Collaboration Agreement between Alkermes Pharma Ireland Limited and Biogen International GmbH (as successor to Biogen Swiss Manufacturing GmbH), effective as of October 3, 2018. Exhibit 10.12 to the Alkermes plc Quarterly Report on Form 10-Q (File No. 011-35299) October 23, 2018 10.7B Second Amendment to License and Collaboration Agreement between Alkermes Pharma Ireland Limited and Biogen International GmbH (as successor to Biogen Swiss Manufacturing GmbH), effective as of January 31, 2019. Exhibit 10.1 to the Alkermes plc Quarterly Report on Form 10-Q (File No. 011-35299) April 25, 2019 10.7C ** Third Amendment to License and Collaboration Agreement between Alkermes Pharma Ireland Limited and Biogen International GmbH (as successor to Biogen Swiss Manufacturing GmbH), effective as of October 30, 2019. Exhibit 10.10.3 to the Alkermes plc Annual Report on Form 10-K (File No. 011-35299) February 13, 2020 10.7D ** Fourth Amendment to License and Collaboration Agreement between Alkermes Pharma Ireland Limited and Biogen International GmbH (as successor to Biogen Swiss Manufacturing GmbH), effective as of August 25, 2022. Exhibit 10.1 to the Alkermes plc Quarterly Report on Form 10-Q (File No. 011-35299) November 2, 2022 10.7E ** Fifth Amendment to License and Collaboration Agreement between Alkermes Pharma Ireland Limited and Biogen International GmbH (as successor to Biogen Swiss Manufacturing GmbH), effective as of June 7, 2024. Exhibit 10.1 to the Alkermes plc Quarterly Report on Form 10-Q (File No. 011-35299) July 24, 2024 10.8 ** Confidential Settlement and License Agreement, dated August 29, 2023, by and among Alkermes, Inc., Alkermes Pharma Ireland Limited and Teva Pharmaceuticals USA, Inc. Exhibit 10.1 to the Alkermes plc Quarterly Report on Form 10-Q (File No. 001-35299) October 25, 2023 10.9 § Tax Matters Agreement, dated November 13, 2023, by and between Alkermes plc and Mural Oncology plc. Exhibit 10.1 to the Alkermes plc Current Report on Form 8-K (File No. 001-35299) November 15, 2023 10.10 **§ Asset Purchase Agreement, dated December 13, 2023, by and between Alkermes Pharma Ireland Limited, Novo Nordisk Production Ireland Limited and Novo Nordisk A/S. Exhibit 10.16 to the Alkermes plc Annual Report on Form 10-K (File No. 001-35299) February 21, 2024 10.11 **§ Authorized Generic Product Supply Agreement, dated September 9, 2025, by and between Alkermes Pharma Ireland Limited and Amneal Pharmaceuticals LLC. Exhibit 10.1 to the Alkermes plc Quarterly Report on Form 10-Q (File No. 001-35299) October 28, 2025 10.12 § Credit Agreement, dated as of February 12, 2026, by and among Alkermes plc, as the TopCo Borrower, Alkermes, Inc., as the U.S. Borrower, Alkermes Finance LLC, as the U.S. Co-Borrower, JPMorgan Chase Bank, N.A., as Administrative Agent, Joint Lead Arranger and Joint Bookrunner, BofA Exhibit 10.1 to the Alkermes plc Current Report on Form 8-K (File No. 001-35299) February 12, 2026 81 Incorporated by reference herein Exhibit No. Description of Exhibit Form Date Securities, Inc., as Joint Lead Arranger and Joint Bookrunner, and the lenders party thereto. 10.13 Settlement and License Agreement by and between Jazz Pharmaceuticals, Inc. and Jazz Pharmaceuticals Ireland Limited and Avadel CNS Pharmaceuticals, LLC and Flamel Ireland Limited. Exhibit 10.3 to the Avadel Pharmaceuticals plc Quarterly Report on Form 10-Q (File No. 001-37977) November 4, 2025 10.14 † Employment Agreement, dated as of December 12, 2007, by and between Richard F. Pops and Alkermes, Inc. Exhibit 10.1 to the Alkermes, Inc. Quarterly Report on Form 10-Q (File No. 001-14131) February 11, 2008 10.14A † Amendment to Employment Agreement, dated as of October 7, 2008, by and between Alkermes, Inc. and Richard F. Pops. Exhibit 10.5 to the Alkermes, Inc. Current Report on Form 8-K (File No. 001-14131) October 7, 2008 10.14B † Amendment No. 2 to Employment Agreement, dated as of September 10, 2009 by and between Richard F. Pops and Alkermes, Inc. Exhibit 10.2 to the Alkermes, Inc. Current Report on Form 8-K (File No. 001-14131) September 11, 2009 10.15 † Form of Employment Agreement, as amended by the Form of Amendment to Employment Agreement set forth in 10.12.1, entered into by and between Alkermes, Inc. and Blair C. Jackson. Exhibit 10.3 to the Alkermes, Inc. Quarterly Report on Form 10-Q (File No. 001-14131) February 11, 2008 10.15A † Form of Amendment to Employment Agreement with Alkermes, Inc. Exhibit 10.7 to the Alkermes, Inc. Current Report on Form 8-K (File No. 001-14131) October 7, 2008 10.16 † Form of Employment Agreement entered into by and between Alkermes, Inc. and each of David J. Gaffin, Craig C. Hopkinson, M.D. Christian Todd Nichols and Joshua Reed. Exhibit 10.1 to the Alkermes plc Quarterly Report on Form 10-Q (File No. 011-35299) November 2, 2016 10.17† Offer Letter, effective as of April 24, 2017, by and between Alkermes, Inc. and Craig C. Hopkinson M.D. Exhibit 10.17.1 to the Alkermes plc Annual Report on Form 10-K (File No. 011-35299) February 16, 2018 10.18 † Offer Letter, dated March 29, 2019, by and between Alkermes, Inc. and Christian Todd Nichols. Exhibit 10.1 to the Alkermes plc Quarterly Report on Form 10-Q (File No. 011-35299) July 29, 2020 10.19 † Offer Letter, dated August 27, 2025, by and between Alkermes, Inc. and Joshua Reed. Exhibit 10.3 to the Alkermes plc Quarterly Report on Form 10-Q (File No. 011-35299) October 28, 2025 10.20 † Form of Indemnification Agreement entered into by and between Alkermes, Inc. and each of the Directors and Secretaries of Alkermes plc and its Irish subsidiaries. Exhibit 10.2 to the Alkermes plc Quarterly Report on Form 10-Q (File No. 001-35299) April 29, 2020 10.21 † Form of Deed of Indemnification entered into by and between each of the Directors, Secretaries and executive officers of Alkermes plc and its subsidiaries. Exhibit 10.1 to the Alkermes plc Quarterly Report on Form 10-Q (File No. 001-35299) April 29, 2020 10.22† Alkermes plc Amended and Restated 2008 Stock Option and Incentive Plan, as amended. Exhibit 10.1 to the Alkermes plc Quarterly Report on Form 10-Q for the quarter ended March 31, 2017 (File No. 001-35299) April 27, 2017 10.22A † Form of Stock Option Award Certificate (Non-Employee Director) under the Alkermes plc Amended and Restated 2008 Stock Option and Incentive Plan, as amended. Exhibit 10.4 to the Alkermes plc Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 (File No. 001-35299) April 28, 2016 10.22B † 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. Exhibit 10.5 to the Alkermes plc Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 (File No. 001-35299) April 28, 2016 82 Incorporated by reference herein Exhibit No. Description of Exhibit Form Date 10.22C † 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. Exhibit 10.6 to the Alkermes plc Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 (File No. 001-35299) April 28, 2016 10.22D † Form of Stock Option Award Certificate (Time Vesting Non-Qualified Option – Irish) under the Alkermes plc Amended and Restated 2008 Stock Option and Incentive Plan, as amended. Exhibit 10.7 to the Alkermes plc Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 (File No. 001-35299) April 28, 2016 10.22E † Form Stock Option Award Certificate (Time Vesting Non-Qualified Option – U.S.) under the Alkermes plc Amended and Restated 2008 Stock Option and Incentive Plan, as amended. Exhibit 10.8 to the Alkermes plc Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 (File No. 001-35299) April 28, 2016 10.22F † Form of Stock Option Award Certificate (Incentive Stock Option – U.S.) under the Alkermes plc Amended and Restated 2008 Stock Option and Incentive Plan, as amended. Exhibit 10.9 to the Alkermes plc Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 (File No. 001-35299) April 28, 2016 10.22G † Form of 2008 Restricted Stock Unit Award Certificate (Performance Vesting Only) under the Alkermes plc Amended and Restated 2008 Stock Option and Incentive Plan, as amended. Exhibit 10.2 to the Alkermes, Inc. Current Report on Form 8-K (File No. 001-14131) May 22, 2009 10.23† Alkermes plc 2011 Stock Option and Incentive Plan, as amended. Exhibit 10.1 to the Alkermes plc Current Report on Form 8-K (File No. 011-35299) May 24, 2017 10.23A † Form of Incentive Stock Option Award Certificate under the Alkermes plc 2011 Stock Option and Incentive Plan, as amended. Exhibit 10.1 to the Alkermes plc Quarterly Report on Form 10-Q (File No. 001-35299) October 23, 2018 10.23B † Form of Non-Qualified Stock Option (Employee) Award Certificate under the Alkermes plc 2011 Stock Option and Incentive Plan, as amended. Exhibit 10.2 to the Alkermes plc Quarterly Report on Form 10-Q (File No. 001-35299) October 23, 2018 10.23C † Form of Restricted Stock Unit (Time-Vesting) Award Certificate under the Alkermes plc 2011 Stock Option and Incentive Plan, as amended. Exhibit 10.3 to the Alkermes plc Quarterly Report on Form 10-Q (File No. 001-35299) October 23, 2018 10.23D † Form of Restricted Stock Unit (Performance-Vesting) Award Certificate under the Alkermes plc 2011 Stock Option and Incentive Plan, as amended. Exhibit 10.4 to the Alkermes plc Quarterly Report on Form 10-Q (File No. 001-35299) October 23, 2018 10.23E † Form of Non-Qualified Stock Option (Non-Employee Director) Award Certificate under the Alkermes plc 2011 Stock Option and Incentive Plan, as amended. Exhibit 10.5 to the Alkermes plc Quarterly Report on Form 10-Q (File No. 001-35299) October 23, 2018 10.24 # † Alkermes plc 2018 Stock Option and Incentive Plan, as amended. 10.24A † Form of Incentive Stock Option Award Certificate under the Alkermes plc 2018 Stock Option and Incentive Plan, as amended. Exhibit 10.6 to the Alkermes plc Quarterly Report on Form 10-Q (File No. 001-35299) October 23, 2018 10.24B † Form of Non-Qualified Stock Option (Employee) Award Certificate under the Alkermes plc 2018 Stock Option and Incentive Plan, as amended. Exhibit 10.7 to the Alkermes plc Quarterly Report on Form 10-Q (File No. 001-35299) October 23, 2018 10.24C † Form of Restricted Stock Unit (Time-Vesting) Award Certificate under the Alkermes plc 2018 Stock Option and Incentive Plan, as amended. Exhibit 10.8 to the Alkermes plc Quarterly Report on Form 10-Q (File No. 001-35299) October 23, 2018 10.24D † Form of Restricted Stock Unit (Performance-Vesting) Award Certificate under the Alkermes plc 2018 Stock Option and Incentive Plan, as amended. Exhibit 10.6 to the Alkermes plc Quarterly Report on Form 10-Q (File No. 001-35299) July 29, 2020 83 Incorporated by reference herein Exhibit No. Description of Exhibit Form Date 10.24E † Form of Non-Qualified Stock Option (Non-Employee Director) Award Certificate under the Alkermes plc 2018 Stock Option and Incentive Plan, as amended. Exhibit 10.4 to the Alkermes plc Quarterly Report on Form 10-Q (File No. 001-35299) July 29, 2020 10.24F † Form of Non-Employee Director Restricted Stock Unit (Time-Vesting) Award Certificate under the Alkermes plc 2018 Stock Option and Incentive Plan, as amended. Exhibit 10.5 to the Alkermes plc Quarterly Report on Form 10-Q (File No. 001-35299) July 29, 2020 10.24G † Form of Non-Employee Director New Director Grant Non-Qualified Stock Option Award Certificate under the Alkermes plc 2018 Stock Option and Incentive Plan, as amended. Exhibit 10.1.1 to the Alkermes plc Quarterly Report on Form 10-Q (File No. 001-35299) July 27, 2022 10.24H † Form of Non-Employee Director New Director Grant Restricted Stock Unit (Time-Vesting) Award Certificate under the Alkermes plc 2018 Stock Option and Incentive Plan, as amended. Exhibit 10.1.2 to the Alkermes plc Quarterly Report on Form 10-Q (File No. 001-35299) July 27, 2022 10.24I † Form of Incentive Stock Option Award Certificate for Reporting Officers under the Alkermes plc 2018 Stock Option and Incentive Plan, as amended. Exhibit 10.19-9 to the Alkermes plc Annual Report on Form 10-K (File No. 001-35299) February 16, 2023 10.24J † Form of Non-Qualified Stock Option Award Certificate for Reporting Officers under the Alkermes plc 2018 Stock Option and Incentive Plan, as amended. Exhibit 10.19-10 to the Alkermes plc Annual Report on Form 10-K (File No. 001-35299) February 16, 2023 10.24K † Form of Restricted Stock Unit (Time-Vesting) Award Certificate for Reporting Officers under the Alkermes plc 2018 Stock Option and Incentive Plan, as amended. Exhibit 10.19-11 to the Alkermes plc Annual Report on Form 10-K (File No. 001-35299) February 16, 2023 10.24L † Form of Restricted Stock Unit (Performance-Vesting) Award Certificate for Reporting Officers under the Alkermes plc 2018 Stock Option and Incentive Plan, as amended. Exhibit 10.19-12 to the Alkermes plc Annual Report on Form 10-K (File No. 001-35299) February 16, 2023 10.24M † Form of Restricted Stock Unit (Performance-Vesting) Award Certificate (rev. 2024) for Reporting Officers under the Alkermes plc 2018 Stock Option and Incentive Plan, as amended. Exhibit 10.25M to the Alkermes plc Annual Report on Form 10-K (File No. 001-35299) February 21, 2024 10.24N † Form of Restricted Stock Unit (Performance-Vesting) Award Certificate (rev. 2024) under the Alkermes plc 2018 Stock Option and Incentive Plan, as amended. Exhibit 10.25N to the Alkermes plc Annual Report on Form 10-K (File No. 001-35299) February 21, 2024 10.24O † Form of Non-Employee Director Non-Qualified Stock Option Award Certificate (rev. 2024) under the Alkermes plc 2018 Stock Option and Incentive Plan, as amended. Exhibit 10.2A to the Alkermes plc Quarterly Report on Form 10-Q (File No. 001-35299) July 24, 2024 10.24P † Form of Non-Employee Director Restricted Stock Unit Award (Time-Vesting) Award Certificate (rev. 2024) under the Alkermes plc 2018 Stock Option and Incentive Plan, as amended. Exhibit 10.2A to the Alkermes plc Quarterly Report on Form 10-Q (File No. 001-35299) July 24, 2024 19.1 # Alkermes plc Insider Trading Policy. 21.1 # List of subsidiaries. 23.1 # Consent of PricewaterhouseCoopers LLP, an independent registered public accounting firm. 24.1 # Power of Attorney (included on the signature pages hereto). 31.1 # Certification Pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934. 31.2 # Certification Pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934. 32.1 ‡ Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 84 Incorporated by reference herein Exhibit No. Description of Exhibit Form Date 97 † Alkermes plc Incentive Compensation Recoupment Policy. Exhibit 97 to the Alkermes plc Annual Report on Form 10-K (File No. 001-35299) February 21, 2024 101.SCH # Inline XBRL Taxonomy Extension Schema with Embedded Linkbases Document. 104 Cover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101). † Indicates a management contract or any compensatory plan, contract or arrangement. # Filed herewith. ‡ Furnished herewith. * Confidential treatment has been granted or requested for certain portions of this exhibit. Such portions have been filed separately with the SEC pursuant to a confidential treatment request. ** Portions of this exhibit (indicated by “[**]”) have been omitted pursuant to Item 601(b) of Regulation S-K. 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. The Company undertakes to furnish copies of any omitted schedules and similar attachments upon request by the SEC. Item 16. Form 10-K Summary None. 85 SIGNAT URES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. ALKERMES PLC By: /s/ Richard F. Pops Richard F. Pops Chairman and Chief Executive Officer February 25, 2026 POWER OF A TTORNEY Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. Each person whose signature appears below in so signing also makes, constitutes and appoints Richard F. 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. Signature Title Date /s/ Richard F. Pops Richard F. Pops Chairman and Chief Executive Officer (Principal Executive Officer) February 25, 2026 /s/ J oshua Reed Joshua Reed Senior Vice President, Chief Financial Officer (Principal Financial Officer) February 25, 2026 /s/ S amuel J. Parisi Samuel J. Parisi Vice President, Finance (Interim Principal Accounting Officer) February 25, 2026 /s/ Shane M. Cooke Shane M. Cooke Director February 25, 2026 /s/ Richard B. Gaynor Richard B. Gaynor Director February 25, 2026 /s/ Cato T. Laurencin Director February 25, 2026 Cato T. Laurencin /s/ Nancy S. Lurker Nancy S. Lurker Director February 25, 2026 /s/ Brian P. McKeon Brian P. McKeon Director February 25, 2026 /s/ Nancy L. Snyderman Nancy L. Snyderman Director February 25, 2026 /s/ Frank Anders Wilson Frank Anders Wilson Director February 25, 2026 /s/ Christopher I. Wright Christopher I. Wright Director February 25, 2026 86 Report of Independent R egistere d Public Accounting Firm To the Board of Directors and Shareholders of Alkermes plc Opinions on the Financial Statements and Internal Control over Financial Reporting 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). In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO. Basis for Opinions The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Annual Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions. Definition and Limitations of Internal Control over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. F- 1 Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Critical Audit Matters The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Rebate Accruals – Medicaid Drug Rebate Program As described in Notes 2 and 10 to the consolidated financial statements, the Company’s revenues from product sales are recorded net of reserves established for applicable discounts and allowances that are offered within contracts with the Company’s customers, health care providers or payers. The Company records accruals for rebates to U.S. states under the Medicaid Drug Rebate Program as a reduction of sales when the product is shipped into the distribution channel using the expected value method. As of December 31, 2025, accrued Medicaid rebates were $186.1 million, of which a significant amount related to the Medicaid Drug Rebate Program. The Company rebates individual U.S. states for all eligible units purchased under the Medicaid program based on a rebate per unit calculation, which is based on the Company’s average manufacturer prices. 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. The principal considerations for our determination that performing procedures relating to rebate accruals for the Medicaid Drug Rebate Program is a critical audit matter are (i) the significant judgment by management due to significant measurement uncertainty involved in developing the reserves, as the reserves are based on assumptions developed using historical experience, current contractual requirements, specific known market events and payment patterns and (ii) a high degree of auditor judgment, subjectivity and effort in applying procedures and evaluating evidence related to these assumptions. Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to rebate accruals for the Medicaid Drug Rebate Program, including controls over the assumptions used to estimate the rebate accruals. These procedures also included, among others, (i) developing an independent estimate of the rebate accruals by utilizing third-party data related to product sales, the historical trend of actual rebate claims paid and consideration of contractual requirement changes and market events; (ii) comparing the independent estimate to management’s estimate; and (iii) testing rebate claims processed by the Company. /s/ PricewaterhouseCoopers LLP Boston, Massachusetts February 25, 2026 We have served as the Company’s auditor since 2007. F- 2 ALKERMES PLC AND SUBSIDIARIES CONSOLIDATED B ALANCE SHEETS December 31, 2025 and 2024 December 31, 2025 December 31, 2024 (In thousands, except share and per share amounts) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 388,570 $ 291,146 Restricted cash 731,206 — Investments—short-term 199,645 460,522 Receivables, net 334,025 384,528 Inventory 196,625 182,887 Prepaid expenses and other current assets 79,090 91,282 Contract assets — 4,990 Total current assets 1,929,161 1,415,355 PROPERTY, PLANT AND EQUIPMENT, NET 221,722 227,564 INVESTMENTS—LONG-TERM 145 73,148 RIGHT-OF-USE ASSETS 77,209 84,245 INTANGIBLE ASSETS, NET AND GOODWILL 83,842 83,917 DEFERRED TAX ASSETS 125,815 154,835 OTHER ASSETS 49,099 16,503 TOTAL ASSETS $ 2,486,993 $ 2,055,567 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable and accrued expenses $ 289,565 $ 185,332 Accrued sales discounts, allowances and reserves 247,126 272,452 Operating lease liabilities—short-term 6,746 6,166 Contract liabilities—short-term — 1,249 Total current liabilities 543,437 465,199 OPERATING LEASE LIABILITIES—LONG-TERM 63,253 69,372 OTHER LONG-TERM LIABILITIES 61,008 56,019 Total liabilities 667,698 590,590 COMMITMENTS AND CONTINGENT LIABILITIES (Note 19) SHAREHOLDERS’ EQUITY: Preferred shares, par value, $ 0.01 per share; 50,000,000 shares authorized; and zero issued and outstanding at December 31, 2025 and 2024 — — Ordinary shares, par value, $ 0.01 per share; 450,000,000 shares authorized; 181,011,166 and 176,670,785 shares issued; and 165,607,028 and 162,176,994 shares outstanding at December 31, 2025 and 2024, respectively 1,810 1,767 Treasury shares, at cost ( 15,404,138 and 14,493,791 shares at December 31, 2025 and 2024, respectively) ( 450,287 ) ( 419,255 ) Additional paid-in capital 3,004,666 2,860,890 Accumulated other comprehensive loss ( 2,100 ) ( 1,967 ) Accumulated deficit ( 734,794 ) ( 976,458 ) Total shareholders’ equity 1,819,295 1,464,977 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 2,486,993 $ 2,055,567 The accompanying notes are an integral part of these consolidated financial statements. F- 3 ALKERMES PLC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPE RATIONS AND COMPREHENSIVE INCOME Years Ended December 31, 2025, 2024 and 2023 Year Ended December 31, 2025 2024 2023 (In thousands, except per share amounts) REVENUES: Product sales, net $ 1,184,643 $ 1,083,534 $ 919,998 Manufacturing and royalty revenues 291,256 474,095 743,388 Research and development revenue — 3 19 Total revenues 1,475,899 1,557,632 1,663,405 EXPENSES: Cost of goods manufactured and sold (exclusive of amortization of acquired intangible assets shown below) 196,457 245,331 253,037 Research and development 323,964 245,326 270,806 Selling, general and administrative 701,522 645,238 689,751 Amortization of acquired intangible assets — 1,101 35,689 Total expenses 1,221,943 1,136,996 1,249,283 OPERATING INCOME FROM CONTINUING OPERATIONS 253,956 420,636 414,122 OTHER INCOME, NET: Interest income 45,304 42,450 30,854 Interest expense ( 12,277 ) ( 22,578 ) ( 23,032 ) Other income (expense), net 4,467 3,242 ( 425 ) Total other income, net 37,494 23,114 7,397 INCOME BEFORE INCOME TAXES 291,450 443,750 421,519 INCOME TAX PROVISION (BENEFIT) 49,786 71,612 ( 97,638 ) NET INCOME FROM CONTINUING OPERATIONS 241,664 372,138 519,157 LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX — ( 5,068 ) ( 163,400 ) NET INCOME $ 241,664 $ 367,070 $ 355,757 EARNINGS PER ORDINARY SHARE: Earnings per ordinary share from continuing operations - basic $ 1.47 $ 2.25 $ 3.12 Loss per ordinary share from discontinued operations - basic $ — $ ( 0.03 ) $ ( 0.98 ) Earnings per ordinary share - basic $ 1.47 $ 2.22 $ 2.14 Earnings per ordinary share from continuing operations - diluted $ 1.43 $ 2.20 $ 3.06 Loss per ordinary share from discontinued operations - diluted $ — $ ( 0.03 ) $ ( 0.96 ) Earnings per ordinary share - diluted $ 1.43 $ 2.17 $ 2.10 WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES OUTSTANDING: Basic 164,703 165,392 166,223 Diluted 168,743 169,198 169,730 COMPREHENSIVE INCOME: Net income $ 241,664 $ 367,070 $ 355,757 Holding (loss) gain, net of a tax (benefit) provision of $( 55 ), $ 292 , and $ 1,195 , respectively ( 133 ) 1,143 7,779 COMPREHENSIVE INCOME $ 241,531 $ 368,213 $ 363,536 The accompanying notes are an integral part of these consolidated financial statements. F- 4 ALKERMES PLC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY Years Ended December 31, 2025, 2024 and 2023 Accumulated Additional Other Ordinary Shares Paid-In Comprehensive Accumulated Treasury Stock Shares Amount Capital Loss Deficit Shares Amount Total (In thousands, except share data) BALANCE — December 31, 2022 168,951,193 $ 1,690 $ 2,913,099 $ ( 10,889 ) $ ( 1,699,285 ) ( 4,574,184 ) $ ( 160,862 ) $ 1,043,753 Issuance of ordinary shares under employee stock plans 3,617,858 36 16,724 — — — — 16,760 Receipt of Alkermes' ordinary shares for the purchase of stock options or to satisfy minimum tax withholding obligations related to share-based awards — — — — — ( 1,015,034 ) ( 28,474 ) ( 28,474 ) Share-based compensation — — 100,871 — — — — 100,871 Unrealized gain on marketable securities, net of tax provision of $ 1,195 — — — 7,779 — — — 7,779 Distribution of Mural Oncology plc — — ( 293,760 ) — — — — ( 293,760 ) Net income — — — — 355,757 — — 355,757 BALANCE — December 31, 2023 172,569,051 $ 1,726 $ 2,736,934 $ ( 3,110 ) $ ( 1,343,528 ) ( 5,589,218 ) $ ( 189,336 ) $ 1,202,686 Issuance of ordinary shares under employee stock plans 4,101,734 41 27,531 — — — — 27,572 Receipt of Alkermes' ordinary shares for the purchase of stock options or to satisfy minimum tax withholding obligations related to share-based awards — — — — — ( 1,010,156 ) ( 29,637 ) ( 29,637 ) Repurchase of Alkermes' ordinary shares — — — — — ( 7,894,417 ) ( 200,282 ) ( 200,282 ) Share-based compensation — — 96,425 — — — — 96,425 Unrealized gain on marketable securities, net of tax provision of $ 292 — — — 1,143 — — — 1,143 Net income — — — — 367,070 — — 367,070 BALANCE —December 31, 2024 176,670,785 $ 1,767 $ 2,860,890 $ ( 1,967 ) $ ( 976,458 ) ( 14,493,791 ) $ ( 419,255 ) $ 1,464,977 Issuance of ordinary shares under employee stock plans 4,340,381 43 43,368 — — — — 43,411 Receipt of Alkermes' ordinary shares for the purchase of stock options or to satisfy minimum tax withholding obligations related to share-based awards — — — — — ( 910,347 ) ( 31,032 ) ( 31,032 ) Repurchase of Alkermes' ordinary shares — — — — — — — — Share-based compensation — — 100,408 — — — — 100,408 Unrealized loss on marketable securities, net of tax benefit of $ 55 — — — ( 133 ) — — — ( 133 ) Net income — — — — 241,664 — — 241,664 BALANCE —December 31, 2025 181,011,166 $ 1,810 $ 3,004,666 $ ( 2,100 ) $ ( 734,794 ) ( 15,404,138 ) $ ( 450,287 ) $ 1,819,295 The accompanying notes are an integral part of these consolidated financial statements. F- 5 ALKERMES PLC AND SUBSIDIARIES CONSOLIDATED STATEM ENTS OF CASH FLOWS Years Ended December 31, 2025, 2024 and 2023 Year Ended December 31, 2025 2024 2023 (In thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 241,664 $ 367,070 $ 355,757 Adjustments to reconcile net income to cash flows from operating activities: Depreciation and amortization 27,165 28,533 74,927 Share-based compensation expense 98,716 96,637 100,905 Deferred income taxes 28,774 40,522 ( 99,902 ) Other non-cash charges 5,311 4,512 6,329 Changes in assets and liabilities: Receivables 50,503 ( 52,052 ) ( 44,510 ) Contract assets 4,990 ( 4,284 ) 8,223 Inventory ( 14,061 ) 3,091 ( 2,712 ) Prepaid expenses and other assets 852 2,254 ( 34,847 ) Right-of-use assets 7,549 7,215 15,387 Accounts payable and accrued expenses 100,893 ( 57,967 ) 23,009 Accrued sales discounts, allowances and reserves ( 25,326 ) 8,811 11,526 Contract liabilities ( 1,249 ) ( 3,525 ) ( 5,926 ) Operating lease liabilities ( 10,320 ) ( 10,123 ) ( 16,147 ) Other long-term liabilities 5,293 8,430 9,334 Cash flows provided by operating activities 520,754 439,124 401,353 CASH FLOWS FROM INVESTING ACTIVITIES: Additions of property, plant and equipment ( 40,420 ) ( 33,484 ) ( 48,048 ) Proceeds from the sale of property, plant and equipment 1,086 461 354 Return of Fountain Healthcare Partners II, L.P. investment — 43 — Proceeds from the sale of the Athlone Facility 1,708 97,933 — Purchases of investments ( 364,369 ) ( 486,547 ) ( 254,471 ) Sales and maturities of investments 697,492 310,286 355,522 Cash flows provided by (used in) investing activities 295,497 ( 111,308 ) 53,357 CASH FLOWS FROM FINANCING ACTIVITIES: Cash transferred to Mural Oncology plc at separation — — ( 275,000 ) Proceeds from the issuance of ordinary shares under share-based compensation arrangements 43,411 27,572 16,760 Employee taxes paid related to net share settlement of equity awards ( 31,032 ) ( 29,637 ) ( 28,474 ) Payment for the repurchase of ordinary shares — ( 200,282 ) — Prepayment of long-term debt — ( 289,542 ) — Principal payments of long-term debt — ( 2,250 ) ( 3,000 ) Cash flows provided by (used in) financing activities 12,379 ( 494,139 ) ( 289,714 ) NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 828,630 ( 166,323 ) 164,996 CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period 291,146 457,469 292,473 CASH, CASH EQUIVALENTS AND RESTRICTED CASH—End of period $ 1,119,776 $ 291,146 $ 457,469 RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH Cash and cash equivalents $ 388,570 $ 291,146 $ 457,469 Restricted cash 731,206 — — Total cash, cash equivalents and restricted cash $ 1,119,776 $ 291,146 $ 457,469 SUPPLEMENTAL CASH FLOW DISCLOSURE: Cash paid for interest $ — $ 23,010 $ 22,748 Cash paid for taxes $ 5,237 $ 2,592 $ 44,243 Non-cash investing and financing activities: Purchased capital expenditures included in accounts payable and accrued expenses $ 3,128 $ 2,254 $ 2,645 The accompanying notes are an integral part of these consolidated financial statements. F- 6 ALKERMES PLC AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Alkermes plc is a global biopharmaceutical company that seeks to develop innovative medicines in the field of neuroscience. 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. 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”). The Company incurred costs of approximately $ 10.0 million in connection with the Avadel Acquisition during the fourth quarter of 2025. 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. 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. 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”). The Separation was effected by means of a distribution of all of the outstanding ordinary shares of Mural to the Company’s shareholders (the “Distribution”), in which each of the Company’s shareholders received one ordinary share, nominal value $ 0.01 per share, of Mural for every ten ordinary shares, par value $ 0.01 per share, of the Company (the “Distribution Ratio”) held by such shareholder as of the close of business on November 6, 2023, the record date for the Distribution (the “Record Date”). The historical results of the oncology business have been reflected as discontinued operations in the Company’s consolidated financial statements through November 15, 2023 (the “Separation Date”). For additional information related to the Separation, see Note 15, Discontinued Operations in these “Notes to Consolidated Financial Statements” in this Annual Report. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation 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. Columns and rows within tables may not sum due to rounding. Reclassification 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. F- 7 ALKERMES PLC AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Discontinued Operations 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 . 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 The preparation of the Company’s consolidated financial statements in accordance with accounting principles generally accepted in the United States (“GAAP”) requires that Company management make estimates, judgments and assumptions that may affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, judgments and methodologies, including but not limited to, those related to revenue from contracts with its customers and related allowances, impairment of intangibles and long-lived assets, share-based compensation, income taxes including the valuation allowance for deferred tax assets, valuation of investments and litigation. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents The Company values its cash and cash equivalents at cost plus accrued interest, which the Company believes approximates its market value. 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. Restricted Cash 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”). Investments The Company has investments in various types of securities, consisting primarily of United States (“U.S.”). government and agency obligations and corporate debt securities. The Company generally 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 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. Realized gains and losses on available-for-sale debt securities are included in other income (expense), net. 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. 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. Fair Value of Financial Instruments The Company’s financial assets and liabilities are recorded at fair value and are classified as Level 1, 2 or 3 within the fair value hierarchy, as described in the accounting standards for fair value measurement. At December 31, 2025, the Company’s financial assets consisted of cash equivalents and investments and are classified within the fair value hierarchy as follows: • Level 1 –these valuations are based on a market approach using quoted prices in active markets for identical assets. Valuations of these products do not require a significant degree of judgment. Assets utilizing Level 1 inputs at December 31, 2025 included U.S. treasury securities, marketable securities classified as cash equivalents and a fixed term deposit account; F- 8 ALKERMES PLC AND SUBSIDIARIES 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. Assets utilizing Level 2 inputs at December 31, 2025 included U.S. government agency debt securities and investments in corporate debt securities that are trading in the credit markets; and • Level 3 - these valuations are based on significant inputs not observable in markets. 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. Inventory Inventory is stated at the lower of cost and net realizable value. The Company utilizes a standard cost basis, which approximates cost determined using the first-in first-out method. Cost is determined using the first-in, first-out method. Included in inventory are raw materials used in production of preclinical and clinical products, which have alternative future use and are charged to R&D expense when consumed. The cost elements included within inventory include three primary categories for commercial products: cost of raw materials; direct labor; and overhead. 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. The Company assesses the regulatory approval process and where the particular product stands in relation to that approval process, including any known safety, efficacy or quality concerns, potential labeling restrictions and other potential impediments to approval. The Company also considers the shelf life of the product in relation to the expected timeline for approval and considers issues that may prevent or delay commercialization, including issues that may arise in relation to the manufacturing of the product. The Company expenses previously capitalized costs related to pre-approval inventory upon a change in such judgment, due to, among other potential factors, a denial or significant delay of approval by relevant regulatory agencies or other issues that may make the pre-approval inventory batches less likely or unlikely to be commercialized and to result in future economic benefit. Property, Plant and Equipment Property, plant and equipment are recorded at cost, subject to review for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Expenditures for repairs and maintenance are charged to expense as incurred and major renewals and improvements are capitalized. Depreciation is calculated using the straight-line method over the following estimated useful lives of the assets: Asset group Term Buildings and improvements 25 years Furniture, fixtures and equipment 5 - 7 years Leasehold improvements Shorter of useful life or lease term Goodwill 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. The Company’s goodwill consists solely of goodwill created as a result of the Company’s acquisition of Elan Drug Technologies (“EDT”) from Elan Corporation, plc (such acquisition, the “Business Combination”) in September 2011 and has been assigned to one reporting unit. A reporting unit is an operating segment or one level below an operating segment or a component to which goodwill is assigned when initially recorded. Goodwill is not amortized but is reviewed for impairment on an annual basis, as of October 31, and whenever events or changes in circumstances indicate that the carrying value of the goodwill might not be recoverable. The Company has the option to first assess qualitative factors to determine whether it is necessary to perform the quantitative impairment test. If the Company elects this option and believes, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of its reporting unit is less than its carrying amount, the quantitative impairment test is required; otherwise, no further testing is required. Alternatively, the Company may elect to not first assess qualitative factors and immediately perform the quantitative impairment test. In the quantitative impairment test, the Company compares the fair value of its reporting unit to its carrying value. 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. F- 9 ALKERMES PLC AND SUBSIDIARIES 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. If the disposal group constitutes a business, the Company attributes a portion of the reporting unit’s goodwill to the disposal group based on the relative fair values of: (i) the disposal group; and (ii) the portion of the reporting unit that will be retained. Impairment of Long-Lived Assets The Company reviews long-lived assets to be held and used for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Conditions that would necessitate an impairment assessment include a significant decline in the observable market value of an asset; a significant change in the extent or manner in which an asset is used; a significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset; an accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset; a current-period operating or cash flow loss combined with a history of operating or cash-flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset; or a current expectation that, more likely than not, a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. In the event that such cash flows are not expected to be sufficient to recover the carrying amount of the assets, the assets are written-down to their estimated fair values. Long-lived assets to be disposed of are carried at fair value less costs to sell them. Revenue from Contracts with Customers The Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which it expects to receive in exchange for those goods or services. The Company recognizes revenue following the five-step model prescribed in accordance with FASB ASC 606, Revenue from Contracts with Customers (“Topic 606”): (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies the performance obligations. Product Sales, Net The Company’s product sales, net in 2025 and 2024 consisted of sales in the U.S. 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. Revenues from product sales are recorded net of reserves established for applicable discounts and allowances that are offered within contracts with the Company’s customers, healthcare providers or payers. The Company’s process for estimating reserves established for these variable consideration components does not differ materially from historical practices. The transaction price, which includes variable consideration reflecting the impact of discounts and allowances, may be subject to constraint and is included in the net sales price only to the extent that it is probable that a significant reversal of the amount of the cumulative revenues recognized will not occur in a future period. Actual amounts may ultimately differ from the Company’s estimates. If actual results vary, the Company adjusts these estimates, which could have an effect on earnings in the period of adjustment. The following are the Company’s significant categories of sales discounts and allowances: • Medicaid Rebates —the Company records accruals for rebates to U.S. states under the Medicaid Drug Rebate Program as a reduction of sales when the product is shipped into the distribution channel using the expected value method. The Company rebates individual U.S. states for all eligible units purchased under the Medicaid program based on a rebate per unit calculation, which is based on the Company’s average manufacturer prices. 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. 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 ; • Chargebacks —discounts that occur when contracted indirect customers purchase directly from wholesalers and specialty distributors. Contracted customers generally purchase a product at its contracted price. The wholesaler or specialty distributor, in turn, then generally charges back to the Company the difference between the wholesale acquisition cost and the contracted price paid to the wholesaler or specialty distributor by the customer. The allowance for chargebacks is made using the expected value method and is based on actual and expected utilization of these programs. Chargebacks could exceed historical experience and the Company’s estimates of future participation in these programs. To date, actual chargebacks have not differed materially from the Company’s estimates; F- 10 ALKERMES PLC AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) • Product Discounts —cash consideration, including sales incentives, given by the Company under agreements with a number of wholesaler, distributor, pharmacy, and treatment provider customers that provide them with a discount on the purchase price of products. The reserve is made using the expected value method and to date, actual product discounts have not differed materially from the Company’s estimates; • Product Returns —the Company records an estimate for product returns at the time its customers take control of their product. The Company estimates this liability using the expected returns of product sold based on historical return levels and specifically identified anticipated returns due to known business conditions and product expiry dates. Return amounts are recorded as a reduction of sales. Once product is returned, it is destroyed. To date, actual product returns have not differed materially from the Company’s estimates; and • Medicare Part D —the Company records accruals for Medicare Part D liabilities under the Medicare Manufacturer Discount Program as a reduction of sales. 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. 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: Year Ended December 31, 2025 (In thousands) Contractual Adjustments (1) Discounts (2) Product Returns Other Total Beginning balance — December 31, 2024 $ 228,978 $ 43,645 $ 50,507 $ 13,297 $ 336,427 Current provisions relating to sales in current year 544,520 420,368 29,914 89,083 1,083,885 Adjustments relating to prior years ( 43,310 ) 174 ( 12,561 ) ( 358 ) ( 56,055 ) Payments relating to sales in current year ( 392,801 ) ( 398,925 ) — ( 80,080 ) ( 871,806 ) Payments relating to sales in prior years ( 127,476 ) ( 23,935 ) ( 12,405 ) ( 12,600 ) ( 176,416 ) Ending balance — December 31, 2025 $ 209,911 $ 41,327 $ 55,455 $ 9,342 $ 316,035 Year Ended December 31, 2024 (In thousands) Contractual Adjustments (1) Discounts (2) Product Returns Other Total Beginning balance — December 31, 2023 $ 234,414 $ 28,690 $ 41,064 $ 10,164 $ 314,332 Current provisions relating to sales in current year 557,651 386,625 28,627 87,373 1,060,276 Adjustments relating to prior years ( 20,562 ) — ( 3,700 ) — ( 24,262 ) Payments/credits relating to sales in current year ( 369,869 ) ( 353,629 ) — ( 70,752 ) ( 794,250 ) Payments/credits relating to sales in prior years ( 172,656 ) ( 18,041 ) ( 15,484 ) ( 13,488 ) ( 219,669 ) Ending balance — December 31, 2024 $ 228,978 $ 43,645 $ 50,507 $ 13,297 $ 336,427 Year Ended December 31, 2023 (In thousands) Contractual Adjustments (1) Discounts (2) Product Returns Other Total Beginning balance — December 31, 2022 $ 226,741 $ 26,175 $ 29,666 $ 7,938 $ 290,520 Current provisions relating to sales in current year 509,780 326,860 33,417 71,449 941,506 Adjustments relating to prior years ( 8,921 ) — 2,841 — ( 6,080 ) Payments/credits relating to sales in current year ( 308,353 ) ( 293,785 ) — ( 56,224 ) ( 658,362 ) Payments/credits relating to sales in prior years ( 184,833 ) ( 30,560 ) ( 24,860 ) ( 12,999 ) ( 253,252 ) Ending balance — December 31, 2023 $ 234,414 $ 28,690 $ 41,064 $ 10,164 $ 314,332 (1) “Contractual Adjustments” include “Medicaid Rebates” and “Medicare Part D” accruals (2) “Discounts” in clude “Chargebacks” and “Product Discounts” F- 11 ALKERMES PLC AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Total revenue-related reserves as of December 31, 2025 and 2024, included in our consolidated balance sheets, are summarized as follows: December 31, (In thousands) 2025 2024 Reduction of accounts receivable $ 21,049 $ 22,031 Components of accrued sales discounts, allowances and reserves 247,126 272,452 Components of other long-term liabilities 47,860 41,944 Total revenue-related reserves $ 316,035 $ 336,427 Collaborative Arrangements The Company has entered into collaborative arrangements with pharmaceutical companies including, among others, Janssen Pharmaceuticals, Inc. (“Janssen, Inc.”), Janssen Pharmaceutica International, a division of Cilag International AG (“Janssen International”), and Janssen Pharmaceutica N.V. (together with Janssen, Inc., Janssen International and their affiliates, “Janssen”) related to INVEGA SUSTENNA ® /XEPLION ® , INVEGA TRINZA ® /TREVICTA ® , INVEGA HAFYERA ® /BYANNLI ® (collectively, the “long-acting INVEGA products”) and RISPERDAL CONSTA ® , and Biogen International GmbH (together with its affiliates, “Biogen”) related to VUMERITY ® . Substantially all of the products developed under these arrangements are currently being marketed as approved products for which the Company received or receives payments for manufacturing services and/or royalties on net product sales. Manufacturing Revenue The Company recognizes manufacturing revenues from the sale of products it manufactures for resale by its licensees. Substantially all of the manufacturing revenues are recognized at a point in time when control of the product passes to the licensee. The sales price for certain of the Company’s manufacturing revenues is based on the end-market sales price earned by its licensees. As end-market sales generally occur after the Company has recorded manufacturing revenue, the Company estimates the sales price for such products based on information supplied to it by the Company’s licensees, its historical transaction experience and other third-party data. Differences between actual manufacturing revenues and estimated manufacturing revenues are reconciled and adjusted for in the period in which they become known, which is generally within the same quarter. The differences between the Company’s actual and estimated manufacturing revenues have not been material to date. Royalty Revenue The Company recognizes royalty revenues related to the sale by its licensees of products that incorporate the Company’s technologies. All of the Company’s royalties qualify for the sales-and-usage exemption under Topic 606 as (i) such royalties are based strictly on the sales-and-usage by the licensee; and (ii) a license of IP is the sole or predominant item to which such royalties relate. Based on this exemption, these royalties are earned in the period that the products are sold by the Company’s licensee and the Company has a present right to payment. Certain of the Company’s royalty revenues are recognized by the Company based on information supplied to the Company by its licensees and require estimates to be made. Differences between actual royalty revenues and estimated royalty revenues are reconciled and adjusted for in the period in which they become known, which is generally within the same quarter. The differences between the Company’s actual and estimated royalty revenues have not been material to date. Receivables, net Receivables, net, include amounts billed and amounts unbilled but currently unconditionally due from customers. The amounts due are stated at their net estimated realizable value. The Company’s unbilled receivable balance was $ 65.8 million and $ 69.5 million at December 31, 2025 and 2024, respectively, and related primarily to royalty revenue. The Company maintains an allowance for doubtful accounts to provide for the estimated amounts of receivables that will not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables and collateral to the extent applicable. The Company’s allowance for doubtful accounts was approximately $ 0.4 million and $ 0.3 million at December 31, 2025 and 2024, respectively. Contract Assets Contract assets include unbilled amounts that will result in a sale under certain of the Company’s manufacturing contracts. The amounts included in the contract assets table below are classified as “Current assets” in the accompanying consolidated balance sheets, as they relate to manufacturing processes that are completed in ten days to eight weeks . F- 12 ALKERMES PLC AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Contract assets consisted of the following: (In thousands) Contract Assets Contract assets at January 1, 2024 $ 706 Additions 6,615 Transferred to receivables, net ( 2,331 ) Contract assets at December 31, 2024 $ 4,990 Additions 4,483 Transferred to receivables, net ( 9,473 ) Contract assets at December 31, 2025 $ — Contract Liabilities Contract liabilities consist of contractual obligations related to deferred revenue. 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. Contrac t liabilities consisted of the following: (In thousands) Contract Liabilities Contract liabilities at January 1, 2024 $ 4,775 Additions 34 Amounts recognized into revenue ( 3,560 ) Contract liabilities at December 31, 2024 $ 1,249 Additions 1,313 Amounts recognized into revenue ( 2,562 ) Contract liabilities at December 31, 2025 $ — Foreign Currency The Company’s functional and reporting currency is the U.S. dollar. Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction. The resulting monetary assets and liabilities are translated into U.S. dollars at exchange rates prevailing on the subsequent balance sheet date. 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. 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 Financial instruments that potentially subject the Company to concentrations of credit risk are receivables and marketable securities. Billings to large pharmaceutical companies and pharmaceutical wholesalers account for the majority of the Company’s receivables, and collateral is not required from these customers. To mitigate credit risk, the Company monitors the financial performance and credit-worthiness of its customers. The following represents revenue and receivables from the Company’s customers exceeding 10 % of the total in each category as of, and for the years ended, December 31, 2025, 2024 and 2023: Year Ended December 31, 2025 2024 2023 Customer Receivables Revenue Receivables Revenue Receivables Revenue McKesson 33 % 31 % 36 % 25 % 14 % 14 % Cencora 26 % 20 % 17 % 15 % 16 % 12 % Cardinal Health 17 % 17 % 16 % 19 % 24 % 20 % Janssen 12 % * 14 % 17 % 23 % 31 % Biogen * * * 11 % * 11 % * 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. 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. F- 13 ALKERMES PLC AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Geographic Information Company revenues by geographic location for the years ended December 31, 2025, 2024 and 2023, as determined by the location of the customer, are as follows: Year Ended December 31, (In thousands) 2025 2024 2023 Revenue by region: U.S. $ 1,372,787 $ 1,410,159 $ 1,491,939 Ireland 754 1,294 1,179 Rest of world 102,358 146,179 170,287 The location of the Company’s assets are as follows: December 31, (In thousands) 2025 2024 Assets by region: Current assets: U.S.: Cash and cash equivalents $ 129,103 $ 70,303 Investments—short-term 199,145 203,631 Receivables, net 265,440 306,259 Other current assets 146,834 129,332 Ireland: Cash and cash equivalents $ 259,467 $ 220,843 Restricted cash 731,206 — Investments—short-term 500 256,891 Receivables, net 68,585 78,269 Other current assets 128,883 149,827 Long-term assets: U.S.: Property, plant and equipment, net $ 221,683 $ 226,646 Investments—long-term 145 24,629 Other 235,183 210,792 Ireland: Property, plant and equipment, net $ 39 $ 918 Investments—long-term — 48,519 Intangible assets, net and goodwill 83,842 83,917 Other 16,938 44,791 Research and Development Expenses For each of its R&D programs, the Company incurs both external and internal expenses. External R&D expenses include fees related to clinical and preclinical activities performed by contract research organizations, consulting fees and costs related to laboratory services, purchases of drug product materials and third-party manufacturing development costs. Internal R&D expenses include employee-related expenses, occupancy costs, depreciation and general overhead. The Company tracks external R&D expenses for each of its development programs, however, internal R&D expenses are not tracked by individual program as they benefit multiple development programs or the Company’s products or technologies in general. Selling, General and Administrative Expenses 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. 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. F- 14 ALKERMES PLC AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Share-Based Compensation The Company’s share-based compensation programs permit grants of awards in the form of stock options and restricted stock unit awards (“RSUs”), which vest with the passage of time and/or based on the achievement of certain performance criteria. The Company issues new shares upon the exercise of stock options or the vesting of RSUs. Under the terms of the Company’s stock option and incentive plans (the “Plans”), the Company’s employees may, at the discretion of the plan administrator, become eligible in certain circumstances set forth in the Plans for accelerated vesting of certain awards granted to them under the Plans. In such circumstances, if there are no effective future service requirements for such employees, the remaining fair value of any such accelerated awards would be expensed as of the date of acceleration. Time-Based Stock Options Except as otherwise provided in the applicable Plan or award certificate, stock option grants to employees expire ten years from the date of grant and generally vest in four equal annual installments, commencing on the first anniversary of the date of grant, provided the employee remains continuously employed or in a service relationship with the Company during the applicable vesting period. Except as otherwise provided in the applicable Plan or Award Certificate (as defined in the 2018 Plan): (i) annual stock option grants to non-employee directors expire ten years from the date of grant and generally vest over a one-year period; and (ii) stock option grants to new non-employee directors expire ten years from the date of grant and generally vest over a three-year period. The estimated fair value of options is recognized over the requisite service period, which is generally the vesting period. Share-based compensation expense is based on awards ultimately expected to vest. Forfeitures are estimated based on historical experience at the time of grant and revised in subsequent periods if actual forfeitures differ from those estimates. The fair value of stock option grants is based on estimates as of the date of grant using a Black-Scholes option valuation model. The Company uses historical data as the basis for estimating stock option terms and forfeitures. Separate groups of employees that have similar historical stock option exercise and forfeiture behavior are considered separately for valuation purposes. The ranges of expected terms disclosed below reflect different expected behavior among certain groups of employees. Expected stock volatility factors are based on a weighted average of implied volatilities from traded options of the Company’s ordinary shares and historical share price volatility of the Company’s ordinary shares, which is determined based on a review of the weighted average of historical weekly price changes of the Company’s ordinary shares. The risk-free interest rate for periods commensurate with the expected term of the stock option is based on the U.S. treasury yield curve in effect at the time of grant. The dividend yield on the Company’s ordinary shares is estimated to be zero as the Company has not paid dividends and does not expect to pay dividends in the near future. The exercise price of options granted is equal to the closing price of the Company’s ordinary shares traded on the Nasdaq Global Select Market on the date of grant. The fair value of each stock option granted was estimated on the grant date with the following weighted-average assumptions: Year Ended December 31, 2025 2024 2023 Expected option term 5 - 7 years 5 - 7 years 5 - 8 years Expected stock volatility 38 % - 41 % 38 % - 42 % 40 % - 44 % Risk-free interest rate 3.75 % - 4.45 % 3.64 % - 4.60 % 3.34 % - 4.75 % Expected annual dividend yield — — — Time-Based Restricted Stock Unit Awards Except as otherwise provided in the applicable Plan or award certificate, time-based RSUs awarded to employees generally vest in four equal annual installments, commencing on the first anniversary of the date of grant, provided the employee remains continuously employed or in a service relationship with the Company during the applicable vesting period. Shares subject to these RSUs are delivered to the employee upon vesting, subject to payment of applicable withholding taxes. The fair value of time-based RSUs is equal to the closing price of the Company’s ordinary shares traded on the Nasdaq Global Select Market on the date of grant. Compensation expense, including the effect of forfeitures, is recognized over the applicable service period. Performance-Based Restricted Stock Unit Awards Performance-based RSUs awarded to employees vest upon the achievement of certain performance criteria, typically during or following the end of a specified performance period. The estimated fair value of these performance-based RSUs are generally based on the closing price of the Company’s ordinary shares traded on the Nasdaq Global Select Market on the date of grant, unless the performance-based RSU is also subject to a market condition. In that case, the fair value of the performance-based RSU is based on a Monte Carlo simulation model. Compensation expense for performance-based RSUs is recognized from the date the Company determines the performance criteria probable of being achieved to the date the award, or relevant portion of the award, is expected to vest. 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. F- 15 ALKERMES PLC AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Income Taxes The Company recognizes income taxes under the asset and liability method. Deferred income taxes are recognized for differences between the financial reporting and tax bases of assets and liabilities at enacted statutory tax rates in effect for the years in which the differences are expected to reverse. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. In evaluating the Company’s ability to recover its deferred tax assets, the Company considers all available positive and negative evidence including its past operating results, the existence of cumulative income in the most recent fiscal years, changes in the business in which the Company operates and its forecast of future taxable income. In determining future taxable income, the Company is responsible for assumptions utilized including the amount of Irish and non-Irish pre-tax operating income, the reversal of temporary differences and the implementation of feasible and prudent tax planning strategies. These assumptions require significant judgment about the forecasts of future taxable income and are consistent with the plans and estimates that the Company is using to manage the underlying business. The Company accounts for uncertain tax positions using a more-likely-than-not threshold for recognizing and resolving uncertain tax positions. The evaluation of uncertain tax positions is based on factors including, but not limited to, changes in tax law, the measurement of tax positions taken or expected to be taken in tax returns, the effective settlement of matters subject to audit, new audit activity and changes in facts or circumstances related to a tax position. The Company evaluates its tax position on a quarterly basis. The Company also accrues for potential interest and penalties related to unrecognized tax benefits in income tax expense. Comprehensive Income Comprehensive income consists of net income and other comprehensive income. 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. Earnings Per Share 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. For the calculation of diluted earnings (loss) per ordinary share from continuing operations and discontinuing operations, the Company utilizes the treasury stock method and adjusts the weighted average number of ordinary shares outstanding for the potential dilutive effect of outstanding ordinary share equivalents such as stock options and RSUs. Segment Information In November 2023, the FASB issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting: Improvements to Reportable Segment Disclosure (“Topic 280”) to establish standards for reporting information about operating segments. Operating segments are defined as components of an enterprise engaging in business activities for which separate financial information is available and regularly reviewed by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance. The Company has utilized the management approach to determine that the Company is managed as one segment on a consolidated basis and is the business of developing, manufacturing and commercializing medicines designed to address unmet medical needs of patients in major therapeutic areas. The Company’s CODM, the Chairman and Chief Executive Officer, reviews the Company’s operating results on an aggregate basis and manages the Company’s operations as a single operating unit. The CODM measures profitability on a reportable segment basis using net income (loss) and utilizes this information in allocating resources and in assessing performance by monitoring budget versus actual results. Please refer to Note 18, Segment Reporting , in these “Notes to Consolidated Financial Statements” in this Annual Report for further information. Employee Benefit Plans 401(k) Plan The Company maintains a 401(k) retirement savings plan (the “401(k) Plan”), which covers all of its eligible U.S.-based employees. Eligible employees may contribute up to 100 % of their eligible compensation, subject to certain Internal Revenue Service (“IRS”) limitations. The Company matches 100 % of employee contributions up to the first 5 % of employee pay, up to IRS limits. Employee and Company contributions are fully vested when made. 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. F- 16 ALKERMES PLC AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Defined Contribution Plan The Company maintains a defined contribution plan for its Ireland-based employees (the “Defined Contribution Plan”). The Defined Contribution Plan provides for eligible employees to contribute up to a maximum of 40 %, depending upon their age, of their total taxable earnings subject to an earnings cap of € 115,000 . The Company provides a match of up to 18 % of taxable earnings depending upon an individual’s contribution level. During the years ended December 31, 2025, 2024 and 2023, the Company contributed $ 2.5 million, $ 3.4 million and $ 5.6 million, respectively, in contributions to the Defined Contribution Plan. New Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB or other standard-setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. In December 2023, the FASB issued ASU 2023-09 , Income Taxes (“Topic 740”) : 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. This ASU became effective for public companies for annual periods beginning after December 15, 2024. This guidance was applied on a retrospective basis. 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. All disclosure requirements under this guidance are required for public business entities and effective for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027. Early adoption is permitted and the amendments in this guidance will be applied prospectively to financial statements for periods after the effective dates. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements and related disclosures. In September 2025, the FASB issued ASU 2025-06, Targeted Improvements to the Accounting for Internal-Use Software. 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”). This ASU is effective for annual periods beginning after December 15, 2027, and for interim periods within those fiscal years. The Company is currently assessing the impact this ASU will have on its consolidated financial statements and related disclosures. In December 2025, the FASB issued ASU 2025-11, Interim Reporting . The amendments in this update clarify current interim disclosure requirements and provide a comprehensive list of required interim disclosures. The update also incorporates a disclosure principle that requires entities to disclose events that occur after the end of the reporting period. This update is effective for interim periods within annual periods beginning after December 15, 2027, though early adoption is permitted. The Company is currently assessing the impact this ASU will have on its consolidated financial statements and related disclosures. 3. REVENUE FROM CONTRACTS WITH CUSTOMERS During the years ended December 31, 2025, 2024 and 2023, the Company recorded product sales, net, as follows: Year Ended December 31, (In thousands) 2025 2024 2023 VIVITROL $ 467,912 $ 457,315 $ 400,419 ARISTADA and ARISTADA INITIO 370,044 346,187 327,690 LYBALVI 346,687 280,032 191,889 Total product sales, net $ 1,184,643 $ 1,083,534 $ 919,998 F- 17 ALKERMES PLC AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) During the years ended December 31, 2025, 2024 and 2023, the Company recorded manufacturing and royalty revenues from its collaboration arrangements as follows: Year Ended December 31, 2025 (In thousands) Manufacturing Revenue Royalty Revenue Total Long-acting INVEGA products (1) $ — $ 109,572 $ 109,572 VUMERITY 16,539 113,929 130,468 RISPERDAL CONSTA 19,569 55 19,624 Other 9,887 21,705 31,592 $ 45,995 $ 245,261 $ 291,256 Year Ended December 31, 2024 (In thousands) Manufacturing Revenue Royalty Revenue Total Long-acting INVEGA products (1) $ — $ 236,386 $ 236,386 VUMERITY 39,292 94,755 134,047 RISPERDAL CONSTA 23,172 272 23,444 Other 56,962 23,256 80,218 $ 119,426 $ 354,669 $ 474,095 Year Ended December 31, 2023 (In thousands) Manufacturing Revenue Royalty Revenue Total Long-acting INVEGA products (1) $ — $ 486,101 $ 486,101 VUMERITY 42,886 86,440 129,326 RISPERDAL CONSTA 36,123 1,153 37,276 Other 63,489 27,196 90,685 $ 142,498 $ 600,890 $ 743,388 (1) “long-acting INVEGA products”: INVEGA SUSTENNA/XEPLION (paliperidone palmitate), INVEGA TRINZA/TREVICTA (paliperidone palmitate) and INVEGA HAFYERA/BYANNLI (paliperidone palmitate). In November 2021, the Company received notice of partial termination of an exclusive license agreement with Janssen. Under this license agreement, the Company provided Janssen with rights to, and know-how, training and technical assistance in respect of, the Company’s small particle pharmaceutical compound technology, known as NANOCRYSTAL technology, which was used to develop the long-acting INVEGA products. When the partial termination became effective in February 2022, Janssen ceased paying royalties related to sales of INVEGA SUSTENNA, INVEGA TRINZA and INVEGA HAFYERA. Accordingly, the Company ceased recognizing royalty revenue related to sales of these products in February 2022. In April 2022, the Company commenced binding arbitration proceedings related to, among other things, Janssen’s partial termination of this license agreement and Janssen’s royalty and other obligations under the agreement. In May 2023, the arbitral tribunal (the “Tribunal”) in the arbitration proceedings issued a final award (the “Final Award”) which concluded the arbitration proceedings. The Final Award provided, among other things, that the Company was due back royalties of $ 195.4 million, inclusive of $ 8.1 million in late-payment interest related to 2022 U.S. net sales of the long-acting INVEGA products, which amount the Company received from Janssen in the second quarter of 2023, and is entitled to 2023 and future royalty revenues from Janssen related to net sales of INVEGA SUSTENNA through August 20, 2024, INVEGA TRINZA through the second quarter of 2030 (but no later than May 2030 when the license agreement expires) and INVEGA HAFYERA through May 2030 (when the license agreement expires). Following issuance of the Final Award, the Company recognized royalty revenues related to the back royalties noted above and resumed recognizing royalty revenue related to ongoing U.S. sales of the long-acting INVEGA products. During 2023, the Company 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. 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. F- 18 ALKERMES PLC AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 4. INVESTMENTS Investments consist of the following: Gross Unrealized Losses Amortized Less than Greater than Estimated December 31, 2025 Cost Gains One Year One Year Fair Value Short-term investments: Available-for-sale securities: U.S. government and agency debt securities $ 101,033 $ 338 $ — $ — $ 101,371 Corporate debt securities 97,740 534 — — 98,274 Total short-term investments 198,773 872 — — 199,645 Held-to-maturity securities: Certificates of deposit 145 — — — 145 Total long-term investments 145 — — — 145 Total investments $ 198,918 $ 872 $ — $ — $ 199,790 December 31, 2024 Short-term investments: Available-for-sale securities: U.S. government and agency debt securities $ 266,506 $ 763 $ ( 58 ) $ ( 6 ) $ 267,205 Corporate debt securities 192,617 762 ( 58 ) ( 4 ) 193,317 Total short-term investments 459,123 1,525 ( 116 ) ( 10 ) 460,522 Long-term investments: Available-for-sale securities: U.S. government and agency debt securities 48,856 — — ( 179 ) 48,677 Corporate debt securities 24,484 — — ( 158 ) 24,326 73,340 — — ( 337 ) 73,003 Held-to-maturity securities: Certificates of deposit 145 — — — 145 Total long-term investments 73,485 — — ( 337 ) 73,148 Total investments $ 532,608 $ 1,525 $ ( 116 ) $ ( 347 ) $ 533,670 Realized gains and losses on the sales and maturities of investments, which were identified using the specific identification method, were as follows: Year Ended December 31, (In thousands) 2025 2024 2023 Proceeds from the sales and maturities of investments $ 697,492 $ 310,286 $ 355,522 Realized gains $ 1,753 $ — $ — Realized losses $ ( 16 ) $ — $ — The Company’s available-for-sale and held-to-maturity securities at December 31, 2025 had contractual maturities in the following periods: Available-for-sale Held-to-maturity Amortized Estimated Amortized Estimated (In thousands) Cost Fair Value Cost Fair Value Within 1 year $ 104,442 $ 104,680 $ 145 $ 145 After 1 year through 5 years 94,331 94,965 — — Total $ 198,773 $ 199,645 $ 145 $ 145 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. (“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. 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. 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. F- 19 ALKERMES PLC AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 5. FAIR VALUE 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: December 31, (In thousands) 2025 Level 1 Level 2 Level 3 Assets: Cash equivalents $ 18,583 $ 18,583 $ — $ — U.S. government and agency debt securities 101,371 94,246 7,125 — Corporate debt securities 98,274 — 97,774 500 Total $ 218,228 $ 112,829 $ 104,899 $ 500 December 31, 2024 Level 1 Level 2 Level 3 Assets: Cash equivalents $ 8,388 $ 8,388 $ — $ — U.S. government and agency debt securities 315,882 265,090 50,792 — Corporate debt securities 217,643 — 217,643 — Total $ 541,913 $ 273,478 $ 268,435 $ — 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. 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: (In thousands) Fair Value Balance, January 1, 2025 $ — Purchase of a corporate debt security 500 Balance, December 31, 2025 $ 500 The Company’s investments in U.S. government and agency debt securities, non-U.S. government agency debt securities and corporate debt securities classified as Level 2 within the fair value hierarchy were initially valued at the transaction price and subsequently valued, at the end of each reporting period, utilizing market-observable data. The market-observable data included reportable trades, benchmark yields, credit spreads, broker/dealer quotes, bids, offers, current spot rates and other industry and economic events. 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. 6. INVENTORY Inventory consists of the following: December 31, December 31, (In thousands) 2025 2024 Raw materials $ 68,387 $ 72,139 Work in process 90,498 79,871 Finished goods (1) 37,740 30,877 Total inventory $ 196,625 $ 182,887 (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. F- 20 ALKERMES PLC AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 7. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consists of the following: December 31, December 31, (In thousands) 2025 2024 Land $ 957 $ 957 Building and improvements 150,672 134,699 Furniture, fixtures and equipment 255,773 244,113 Leasehold improvements 42,535 42,416 Construction in progress 38,795 58,391 Subtotal 488,732 480,576 Less: accumulated depreciation ( 267,010 ) ( 253,012 ) Total property, plant and equipment, net $ 221,722 $ 227,564 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. Amounts included as construction in progress in the consolidated balance sheets primarily include capital expenditures at the Company’s manufacturing facility in Wilmington, Ohio. The Company continues to evaluate its manufacturing capacity based on expectations of demand for its products and will continue to record such amounts within construction in progress until such time as the underlying assets are placed into service. 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. 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. 8. INTANGIBLE ASSETS AND GOODWILL Intangible assets and goodwill consists of the following: December 31, 2025 December 31, 2024 (In thousands) Weighted Amortizable Life (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Goodwill $ 83,027 $ — $ 83,027 $ 83,027 $ — $ 83,027 Finite-lived intangible assets: Collaboration agreements 12 $ 465,590 $ ( 465,590 ) $ — $ 465,590 $ ( 465,590 ) $ — Capitalized IP 11 - 13 118,160 ( 117,345 ) 815 118,160 ( 117,270 ) 890 Total $ 583,750 $ ( 582,935 ) $ 815 $ 583,750 $ ( 582,860 ) $ 890 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. 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. The Company elected to perform a qualitative impairment test and determined that based on the weight of all available evidence, the fair value of the reporting unit more-likely-than-not exceeded its carrying value. 9. LEASES All of the Company’s leases are accounted for as operating leases. 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. During the years ended December 31, 2025, 2024 and 2023, cash paid for amounts included for the measurement of lease liabilities was $ 10.3 million, $ 10.1 million and $ 10.3 million, respectively. 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. F- 21 ALKERMES PLC AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Future lease payments under non-cancelable leases as of December 31, 2025 consisted of the following: December 31, (In thousands) 2025 2026 10,480 2027 9,613 2028 9,677 2029 9,611 2030 9,345 Thereafter 41,026 Total operating lease payments $ 89,752 Less: imputed interest ( 19,753 ) Total operating lease liabilities $ 69,999 10. ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses consists of the following: December 31, December 31, (In thousands) 2025 2024 Accounts payable $ 107,950 $ 45,630 Accrued compensation 82,450 70,960 Accrued other 99,165 68,742 Total accounts payable and accrued expenses $ 289,565 $ 185,332 A summary of the Company’s current provision for sales discounts, allowances and reserves is as follows: December 31, December 31, (In thousands) 2025 2024 Medicaid rebates $ 186,068 $ 202,044 Product discounts 18,688 19,351 Medicare Part D 23,843 26,933 Other 18,527 24,124 Total accrued sales discounts, allowances and reserves $ 247,126 $ 272,452 Included in accounts payable was approximately $ 59.6 million and $ 11.4 million of amounts payable related to state Medicaid rebates as of December 31, 2025 and 2024, respectively. 11. LONG-TERM DEBT In November 2025, the Company entered into the Bridge Credit Agreement in order to fund the Avadel Acquisition. 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. 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. 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. 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. 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. 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. F- 22 ALKERMES PLC AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 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. Borrower, Alkermes Finance LLC, as the U.S. Co-Borrower, JPMorgan Chase Bank, N.A., as Administrative Agent, Joint Lead Arranger and Joint Bookrunner, BofA Securities, Inc., as Joint Lead Arranger and Joint Bookrunner, and the lenders party thereto. The Credit Agreement provides for (i) a senior secured term loan A facility in an aggregate principal amount of up to $ 750.0 million (the “TLA Facility”) and (ii) a senior secured term loan B facility in an aggregate principal amount of up to $ 775.0 million (the “TLB Facility” and together with the TLA Facility, the “Facilities”). The TLA Facility matures on February 12, 2031 , and the TLB Facility matures on August 12, 2031 . On the closing date of the Facilities (the “Closing Date”), the Company borrowed the full $ 1.525 billion available under the Facilities. 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. 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. 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. 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. 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. The Credit Agreement also contains certain customary events of default, including upon a change of control. 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. 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. 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. 12. EARNINGS PER SHARE 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. For the calculation of diluted earnings (loss) per ordinary share from continuing operations and discontinuing operations, the Company utilizes the treasury stock method and adjusts the weighted average number of ordinary shares outstanding for the potential dilutive effect of outstanding ordinary share equivalents such as stock options and RSUs. Year Ended December 31, (In thousands) 2025 2024 2023 Numerator: Net income from continuing operations $ 241,664 $ 372,138 $ 519,157 Net loss from discontinued operations — ( 5,068 ) ( 163,400 ) Net income $ 241,664 $ 367,070 $ 355,757 Denominator: Weighted average number of ordinary shares outstanding 164,703 165,392 166,223 Effect of dilutive securities: Stock options 1,867 1,377 1,093 Restricted stock unit awards 2,173 2,429 2,414 Dilutive ordinary share equivalents 4,040 3,806 3,507 Shares used in calculating diluted earnings per ordinary share 168,743 169,198 169,730 F- 23 ALKERMES PLC AND SUBSIDIARIES 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: Year Ended December 31, (In thousands) 2025 2024 2023 Stock options 9,468 11,517 12,422 Restricted stock unit awards 2,243 2,391 2,378 Total 11,711 13,908 14,800 13. SHAREHOLDERS’ EQUITY Share Repurchase Program In February 2024, the Company’s board of directors approved a share repurchase program authorizing the Company to repurchase ordinary shares of the Company in an aggregate amount of up to $ 400.0 million (exclusive of any fees, commissions or other expenses related to such repurchases) from time to time on the open market (the “Repurchase Program”). The specific timing and amounts of repurchases under the Repurchase Program will depend on a variety of factors, including but not limited to ongoing assessments of the Company’s needs, alternative investment opportunities, the market price of the Company’s ordinary shares and general market conditions. The Repurchase Program has no set expiration date and may be suspended or discontinued at any time. During the 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. All ordinary shares repurchased were returned to treasury. As of December 31, 2025, the remaining amount authorized under the Repurchase Program was $ 200.0 million. 14. SHARE-BASED COMPENSATION Share-Based Compensation Expense 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, (In thousands) 2025 2024 2023 Cost of goods manufactured and sold $ 6,757 $ 5,798 $ 11,353 Research and development 25,659 28,085 25,753 Selling, general and administrative 66,300 62,754 55,611 Share-based compensation expense from continuing operations 98,716 96,637 92,717 Research and development — — 3,255 Selling, general and administrative — — 4,933 Share-based compensation expense from discontinued operations — — 8,188 Total share-based compensation expense $ 98,716 $ 96,637 $ 100,905 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 The Company has one share-based compensation plan pursuant to which awards are currently being made: the 2018 Stock Option and Incentive Plan, as amended (the “2018 Plan”). The Company has two share-based compensation plans pursuant to which outstanding awards have been made, but from which no further awards can or will be made: the Alkermes plc Amended and Restated 2008 Stock Option and Incentive Plan, as amended, (the “2008 Plan”) and the Alkermes plc 2011 Stock Option and Incentive Plan, as amended (the “2011 Plan,” and together with the 2018 Plan and the 2008 Plan, the “the Alkermes Stock Option and Incentive Plans”). 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. F- 24 ALKERMES PLC AND SUBSIDIARIES 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. On May 21, 2025, the Company’s shareholders approved an amended version of the then-current version of the 2018 Plan that served to, among other things, increase the number of ordinary shares authorized for issuance thereunder by 4.25 million. At December 31, 2025, there were 17.9 million ordinary shares available for issuance in the aggregate under the 2018 Plan. The 2018 Plan provides that awards other than stock options will be counted against the total number of shares available under the plan in a 1.8 -to-1 ratio. Stock Options A summary of stock option activity is presented in the following table: Number of Weighted Average Shares Exercise Price Outstanding, January 1, 2025 17,478,619 $ 31.73 Granted 1,807,610 $ 35.03 Exercised ( 1,826,407 ) $ 23.77 Expired ( 1,034,094 ) $ 63.52 Forfeited ( 190,358 ) $ 30.42 Outstanding, December 31, 2025 16,235,370 $ 30.98 Exercisable, December 31, 2025 10,855,664 $ 31.20 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. The aggregate intrinsic value of stock options exercised during the years ended December 31, 2025, 2024 and 2023 was $ 16.3 million, $ 10.9 million and $ 6.0 million, respectively. At December 31, 2025, there were 5.2 million stock options expected to vest, with a weighted average exercise price of $ 30.46 per share, a weighted average contractual remaining life of 7.7 years and an aggregate intrinsic value of $ 3.2 million. 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. 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. At December 31, 2025, there was $ 28.8 million of unrecognized share-based compensation expense related to unvested stock options, which is expected to be recognized over a weighted average period of 1.9 years. Time-Based Restricted Stock Unit Awards A summary of time-based RSU activity is presented in the following table: Weighted Average Number of Shares Grant Date Fair Value Unvested, January 1, 2025 4,905,206 $ 26.80 Granted 2,115,535 $ 35.24 Forfeited ( 343,414 ) $ 30.78 Vested ( 2,044,461 ) $ 25.24 Unvested, December 31, 2025 4,632,866 $ 31.08 The weighted average grant date fair values of time-vesting RSUs granted during the years ended December 31, 2025, 2024 and 2023 were $ 35.24 , $ 29.51 and $ 27.65 , respectively. The total fair value of time-vesting RSUs that vested during the years ended December 31, 2025, 2024 and 2023, was $ 51.6 million, $ 51.6 million and $ 63.0 million, respectively. 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. F- 25 ALKERMES PLC AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Performance-Based Restricted Stock Unit Awards In February 2025, 2024 and 2023, the compensation committee of the Company’s board of directors approved the Company’s long-term incentive plans, pursuant to which awards of performance-based RSUs are granted to employees of the Company at the Senior Vice President level and above, in each case subject to vesting based on the achievement of certain financial, commercial and/or R&D performance criteria to be assessed over a performance period of three years from the date of the grant, and subject, at the end of such three-year performance period, to upward or downward adjustment based on a market condition tied to relative share price performance over the three-year performance period. A summary of performance-based RSU activity is presented in the following table: Weighted Average Number of Shares Grant Date Fair Value Unvested, January 1, 2025 1,335,658 $ 32.13 Granted 533,031 $ 40.15 Forfeited ( 145,745 ) $ 30.13 Vested ( 469,513 ) $ 30.13 Unvested, December 31, 2025 1,253,431 $ 36.53 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. 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. 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. As of December 31, 2023, the financial performance criteria for these awards were deemed not probable of being achieved; however, in February 2024, the compensation committee of the Company’s board of directors determined that the Company partially achieved the financial performance criteria. This was considered a modification in accordance with FASB ASC 718, Compensation—Stock Compensation and resulted in a modification charge of approximately $ 6.8 million. In February 2024 , the compensation committee of the Company’s board of directors also determined that the Company achieved the pipeline performance criteria for these awards, resulting in a $ 2.6 million incremental share-based compensation expense, as it was deemed such pipeline performance criteria had been met. The share-based compensation expense related to these achievements was recognized in 2024. 15. DISCONTINUED OPERATIONS Mural Oncology Separation In November 2023, the Company completed the Separation. 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. 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. 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. 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. The Company determined that the Separation and related Distribution qualified as tax-free for U.S. federal income tax purposes, which required significant judgment by management. In making such determinations, the Company applied U.S. federal tax law to relevant facts and circumstances and obtained: (i) a favorable private letter ruling from the IRS; (ii) a tax opinion; and (iii) other external tax advice related to the concluded tax treatment. If the Separation and Distribution were to ultimately fail to qualify for tax-free treatment for U.S. 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 F- 26 ALKERMES PLC AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) future reporting periods. 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. In making such determinations, the Company applied Irish tax law to relevant facts and circumstances and obtained: (i) a tax opinion; and (ii) other external tax advice related to the concluded tax treatment. 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. In connection with the Separation, the Company also entered into a tax matters agreement with Mural, dated as of November 13, 2023 . 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. 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. Discontinued Operations 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. 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. The following table summarizes expenses of the discontinued operations for the years ended December 31, 2024 and 2023: Year Ended December 31, (In thousands) 2024 2023 Operating expenses from discontinued operations Cost of goods manufactured $ — $ 39 Research and development 5,790 116,177 Selling, general and administrative — 48,587 Total operating expenses from discontinued operations 5,790 164,803 Operating loss from discontinued operations ( 5,790 ) ( 164,803 ) Income tax benefit from discontinued operations ( 722 ) ( 1,403 ) Net loss and comprehensive loss from discontinued operations $ ( 5,068 ) $ ( 163,400 ) 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: Year Ended December 31, (In thousands) 2023 OPERATING ACTIVITIES: Depreciation $ 2,319 Share-based compensation expense 8,188 Right-of-use assets 3,803 Operating lease liabilities ( 3,938 ) INVESTING ACTIVITIES: Additions of property, plant and equipment $ ( 1,798 ) 16. COLLABORATIVE ARRANGEMENTS The Company has entered into several collaborative arrangements to develop and commercialize products and, in connection with such arrangements, to access technologies, financial, marketing, manufacturing and other resources. Refer to the “Patents and Proprietary Rights” section in “Item 1— Business” of this Annual Report for information with respect to IP protection for these products. 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. F- 27 ALKERMES PLC AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) The Company’s significant collaborative arrangements are described below: Janssen INVEGA SUSTENNA/XEPLION, INVEGA TRINZA/TREVICTA and INVEGA HAFYERA/BYANNLI Under an exclusive license agreement with Janssen, the Company provided Janssen with rights to, and know-how, training and technical assistance in respect of, the Company’s small particle pharmaceutical compound technology, known as NANOCRYSTAL technology, which was used to develop the long-acting INVEGA products, and the Company received milestone payments from Janssen upon the achievement of certain development goals from Janssen; there are no further milestones to be earned under this agreement. The agreement also provides for tiered royalty payments, which consist of a patent royalty and a know-how royalty, both of which are determined on a country-by-country basis. 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. 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. The know-how royalty rate resets to 3.5 % at the beginning of each calendar year and is payable until 15 years from first commercial sale of a product in each individual country, subject to expiry of the agreement. These royalty payments may be reduced in any country based on patent litigation or on competing products achieving certain minimum sales thresholds. The license agreement, unless earlier terminated, terminates upon the expiration of the last of the patents subject to the agreement. After expiration, Janssen retains a non-exclusive, royalty-free license to develop, manufacture and commercialize the products, subject to certain surviving obligations. Janssen may terminate the license agreement in whole or in part upon three months’ notice to the Company. The Company and Janssen have the right to terminate the agreement upon a material breach of the other party, which is not cured within a certain time period, or upon the other party’s bankruptcy or insolvency. In November 2021, the Company received notice from Janssen of partial termination of the license agreement, following which Janssen ceased paying the Company royalties related to U.S. sales of INVEGA SUSTENNA, INVEGA TRINZA and INVEGA HAFYERA. In April 2022, the Company commenced binding arbitration proceedings related to, among other things, Janssen’s partial termination of this license agreement and Janssen’s royalty and other obligations under the agreement. In May 2023, the Tribunal in the arbitration proceedings issued a Final Award that served to reinstate the Janssen royalties and required payment by Janssen of back royalties and interest for amounts owed but not yet paid since the effective date of the partial termination. The Final Award also provided, among other things, that the Company was entitled to royalty revenues from Janssen related to net sales of INVEGA SUSTENNA through August 20, 2024, INVEGA TRINZA through the second quarter of 2030 (but no later than May 2030 when the license agreement expires) and INVEGA HAFYERA through May 2030 (when the license agreement expires). RISPERDAL CONSTA Under a product development agreement, the Company collaborated with Janssen on the development of RISPERDAL CONSTA. 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. Under two license agreements, the Company granted Janssen and an affiliate of Janssen exclusive worldwide licenses to use and sell RISPERDAL CONSTA. Under its license agreements with Janssen, the Company receives royalty payments equal to 2.5 % of Janssen’s end-market net sales of RISPERDAL CONSTA in each country where the license is in effect based on the quarter when the product is sold by Janssen. This royalty may be reduced in any country based on lack of patent coverage and significant competition from generic versions of the product. Janssen can terminate the license agreements upon 30 days ’ prior written notice to the Company. Either party may terminate the license agreements by written notice following a breach which continues for 90 days after the delivery of written notice thereof or upon the other party’s insolvency. The licenses granted to Janssen expire on a country-by-country basis upon the later of: (i) the expiration of the last patent claiming the product in such country; or (ii) 15 years after the date of the first commercial sale of the product in such country, provided that in no event will the license granted to Janssen expire later than the twentieth anniversary of the first commercial sale of the product in each such country, with the exception of Canada, France, Germany, Italy, Japan, Spain and the United Kingdom, in each case where the fifteen-year minimum shall pertain regardless. After expiration, Janssen retains a non-exclusive, royalty-free license to manufacture, use and sell RISPERDAL CONSTA. The Company exclusively manufactures RISPERDAL CONSTA at its Wilmington, Ohio facility for commercial sale. Under its manufacturing and supply agreement with Janssen, the Company records manufacturing revenues when product is fully manufactured and approved for shipment by both Janssen and the Company. Revenue is based on a percentage of Janssen’s net unit sales price for RISPERDAL CONSTA for the applicable calendar year. This percentage is determined based on Janssen’s unit demand for such calendar year and varies based on the volume of units shipped, with a minimum manufacturing fee of 7.5 %. Either party may terminate the manufacturing and supply agreement upon a material breach by the other party, which is not resolved within 60 days after receipt of a written notice specifying the material breach or upon written notice in the event of the other party’s insolvency or bankruptcy. Janssen may terminate the agreement upon six months ’ written notice to the Company. In the event that Janssen F- 28 ALKERMES PLC AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 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 %. Biogen 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. Under this license and collaboration agreement, the Company received an upfront cash payment and milestone payments related to the achievement of certain milestones. The Company is also eligible to receive additional payments upon achievement of certain milestones, including milestones relating to the first two products, other than VUMERITY, covered by patents licensed to Biogen under the license and collaboration agreement. In addition, the Company receives a 15 % royalty on worldwide net sales of VUMERITY, subject to increases for VUMERITY manufactured and/or packaged by Biogen or its designees. The Company is also entitled to receive royalties on net sales of products other than VUMERITY covered by patents licensed to Biogen under the license and collaboration agreement, at tiered royalty rates calculated as percentages of net sales ranging from high-single digits to sub-teen double digits. All royalties are payable on a product-by-product and country-by-country basis until the later of (i) the last-to-expire patent right covering the applicable product in the applicable country and (ii) a specified period of time from the first commercial sale of the applicable product in the applicable country. Royalties for all products are subject to customary reductions, as set forth in the license and collaboration agreement. 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. 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. In May 2024, the Company completed the sale of the Athlone Facility where VUMERITY was manufactured. 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. Biogen has the right to terminate the license and collaboration agreement at will, on a product-by-product basis or in its entirety upon 180 days’ prior notice to the Company. Either party has the right to terminate the license and collaboration agreement following any governmental prohibition of the transactions effected by the agreement, or in connection with an insolvency event involving the other party. Upon termination of the license and collaboration agreement by either party, then, at the Company’s request, the VUMERITY program will revert to the Company. 17. INCOME TAXES The Company’s provision (benefit) for income taxes from continuing operations consists of the following: Year Ended December 31, (In thousands) 2025 2024 2023 Current income tax provision (benefit): Domestic - Ireland $ 12,928 $ 1,192 $ — Foreign - U.S. 8,084 29,898 ( 259 ) Total current income tax provision (benefit) 21,012 31,090 ( 259 ) Deferred income tax provision (benefit): Domestic - Ireland $ 28,620 $ 61,783 $ ( 107,064 ) Foreign - U.S. 154 ( 21,261 ) 9,685 Total deferred income tax provision (benefit) 28,774 40,522 ( 97,379 ) Total income tax provision (benefit) $ 49,786 $ 71,612 $ ( 97,638 ) F- 29 ALKERMES PLC AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 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. and Ireland. 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. 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. 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. Cumulative unremitted earnings of U.S. subsidiaries totaled approximately $ 965.7 million at December 31, 2025. In the event of a repatriation of those earnings in the form of dividends or otherwise, the Company may be liable for income taxes, subject to adjustment, if any, for foreign tax credits and foreign withholding taxes payable to foreign tax authorities. The Company estimates that approximately $ 70.0 million of income taxes would be payable on the repatriation of the unremitted earnings to Ireland. 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) 2025 2024 2023 Domestic - Ireland $ 280,129 $ 440,674 $ 411,767 Foreign - U.S. 11,321 3,076 9,752 Income from continuing operations before provision (benefit) for income taxes $ 291,450 $ 443,750 $ 421,519 The components of the Company’s net deferred tax assets consist of the following: December 31, December 31, (In thousands) 2025 2024 Deferred tax assets: Net Operating Loss ("NOL") carryforwards $ 58,850 $ 80,209 Tax credits 28,716 26,882 Share-based compensation 32,483 33,773 Accrued expenses and reserves 45,635 41,189 Research and development expenses 65,843 71,167 Lease liability 16,293 17,537 Other 4,621 3,695 Less: valuation allowance ( 83,364 ) ( 79,727 ) Total deferred tax assets 169,077 194,725 Deferred tax liabilities: Inventory ( 3,845 ) — Property, plant and equipment ( 22,458 ) ( 21,917 ) Right-to-use asset ( 15,010 ) ( 16,337 ) Other ( 1,949 ) ( 1,940 ) Total deferred tax liabilities ( 43,262 ) ( 40,194 ) Net deferred tax assets $ 125,815 $ 154,531 F- 30 ALKERMES PLC AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) The activity in the valuation allowance associated with deferred taxes consists of the following: (In thousands) Balance at Beginning of Period (1) (Additions) / Reductions (2) Balance at End of Period Deferred tax asset valuation allowance for the year ended December 31, 2023 $ ( 271,517 ) $ 142,221 $ ( 129,296 ) Deferred tax asset valuation allowance for the year ended December 31, 2024 $ ( 129,296 ) $ 49,569 $ ( 79,727 ) Deferred tax asset valuation allowance for the year ended December 31, 2025 $ ( 79,727 ) $ ( 3,637 ) $ ( 83,364 ) (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. 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. These NOLs were transferred from Elan Corporation, plc as part of the combination of the drug technology business of Elan Corporation, plc with the business of Alkermes, Inc. A number of restrictions applied to these NOLs thereby restricting the Company’s ability to utilize such NOLs. Following the sale of the Athlone Facility, the Company believes that its ability to utilize these NOLs is remote. 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. The Company regularly assesses the need for a valuation allowance against its deferred tax assets. In making such assessment, the Company considers both positive and negative evidence related to the likelihood of realization of the deferred tax assets to determine, based on the weight of available evidence, whether it is more-likely-than-not that some or all of the deferred tax assets will not be realized. At December 31, 2025, the Company maintained a valuation allowance of $ 30.5 million against certain U.S. state deferred tax assets and $ 52.8 million against certain Irish deferred tax assets, as the Company has determined that it is more-likely-than-not that these deferred tax assets will not be realized and some may be abandoned. If the Company incurs losses in the U.S. or in Ireland in the future, or fails to achieve sufficient profitability in a timely manner, the evaluation of the recoverability of the deferred tax assets could change and a valuation allowance against such deferred tax assets may be required in part or in whole. The Company will continue to monitor the need for a valuation allowance against its deferred tax assets on a quarterly basis. As of December 31, 2025, the Company had $ 210.2 million of Irish NOL carryforwards, $ 13.6 million of U.S. federal NOL carryforwards, $ 43.2 million of state NOL carryforwards and $ 35.2 million of state tax credits which will either expire on various dates through 2040 or can be carried forward indefinitely. These loss and credit carryforwards are available to reduce certain future Irish and foreign taxable income and tax. These loss and credit carryforwards are subject to review and possible adjustment by the appropriate taxing authorities and may be subject to limitations based upon changes in the ownership of the Company’s ordinary shares. Included within these loss and credit carryforwards are $ 13.6 million of U.S. federal NOL carryforwards and $ 5.3 million of state NOL carryforwards, acquired as part of the acquisition of Rodin Therapeutics, Inc. in November 2019, each of which are subject to a $ 0.5 million annual limitation. A reconciliation of the Company’s statutory tax rate to its effective tax rate is as follows: Year Ended December 31, (In thousands, except percentage amounts) 2025 2024 2023 Statutory tax rate $ 36,431 12.5 % $ 55,469 12.5 % $ 52,690 12.5 % Foreign tax effects—U.S. State and local income tax, net of federal income tax effect 2,526 0.9 % 2,802 0.6 % 348 0.1 % Tax Credits Research and Development ( 6,975 ) ( 2.4 ) % ( 7,815 ) ( 1.8 ) % ( 2,823 ) ( 0.7 ) % Nontaxable or nondeductible items Share-based compensation 5,565 1.9 % 8,347 1.9 % 5,959 1.4 % Other (1) 6,313 2.2 % 5,591 1.3 % 4,956 1.2 % Changes in valuation allowances 2,706 0.9 % ( 1,948 ) ( 0.4 ) % ( 159,496 ) ( 37.8 ) % Nontaxable or nondeductible items Nonoperating income 1,474 0.5 % 5,798 1.3 % 235 0.1 % Other (2) 1,108 0.4 % 4,035 0.9 % 727 0.1 % Worldwide changes in unrecognized tax benefits 638 0.2 % ( 667 ) ( 0.2 ) % ( 234 ) ( 0.1 ) % Total $ 49,786 17.1 % $ 71,612 16.1 % $ ( 97,638 ) ( 23.2 ) % (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. (2) Other items include, but are not limited to non-deductible transaction costs and non-deductible compensation. For the year ended December 31, 2024, other items also included amounts relating to the sale of the Athlone Facility. F- 31 ALKERMES PLC AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Unrecognized (In thousands) Tax Benefits Balance, December 31, 2022 $ 8,973 Reductions based on the lapse of applicable statutes of limitations ( 1,073 ) Additions based on tax positions related to prior periods 281 Additions based on tax positions related to the current period 558 Balance, December 31, 2023 $ 8,739 Reductions based on the lapse of applicable statutes of limitations ( 1,306 ) Additions based on tax positions related to the prior period 59 Additions based on tax positions related to the current period 581 Balance, December 31, 2024 $ 8,073 Reductions based on the lapse of applicable statutes of limitations ( 1,081 ) Additions based on tax positions related to the prior period 1,037 Additions based on tax positions related to the current period 681 Balance, December 31, 2025 $ 8,710 The unrecognized tax benefits at December 31, 2025, if recognized, would affect the Company’s effective tax rate. The Company has elected to include interest and penalties related to uncertain tax positions as a component of its provision for taxes. 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. (federal and state). These jurisdictions have varying statutes of limitations. In the U.S., the 2022 through 2025 fiscal years remain subject to examination by the respective tax authorities, however, some states have longer statutes of limitations and additional fiscal years remain subject to examination. In Ireland, the 2021 through 2025 fiscal years remain subject to examination by the Irish tax authorities. Additionally, because of the Company’s Irish and U.S. loss carryforwards and credit carryforwards, certain tax returns from fiscal years 2002 onward may also be examined. These years generally remain open for three to four years after the loss carryforwards and credit carryforwards have been utilized. 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. A reconciliation of the Company’s cash paid for income taxes, net of refunds received, is as follows: Year Ended December 31, (In thousands) 2025 2024 2023 Domestic - Ireland $ 2,455 (1) $ — $ — Foreign - U.S. Federal $ ( 4 ) $ — $ 38,850 State California 1,216 2,365 * Mississippi 750 * * Other States 820 227 5,393 Foreign - U.S. subtotal 2,782 2,592 44,243 Total $ 5,237 $ 2,592 $ 44,243 * Below the disclosure threshold for the period presented. (1) This number includes amounts due to the Company under other tax heads that was reallocated to the income tax account. F- 32 ALKERMES PLC AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 18. SEGMENT REPORTING Segment Information The Company’s significant segment expenses that are regularly provided to the CODM are as follows: Year Ended December 31, (In thousands) 2025 2024 2023 REVENUES: Total revenue $ 1,475,899 $ 1,557,632 $ 1,663,405 EXPENSES: Cost of goods manufactured and sold (exclusive of amortization of acquired intangible assets shown below) 196,457 245,331 253,037 External R&D expenses: Development programs: Alixorexton 95,763 45,947 31,321 LYBALVI 18,757 18,737 15,379 Other external R&D expenses 52,759 36,627 51,668 Total external R&D expenses 167,279 101,311 98,368 Internal R&D expenses: Employee-related 125,955 114,496 128,282 Occupancy 13,001 11,206 12,299 Depreciation 5,605 5,701 9,578 Other internal R&D expenses 12,124 12,612 22,279 Total internal R&D expenses 156,685 144,015 172,438 R&D expenses 323,964 245,326 270,806 Selling, general and administrative expenses: Selling and marketing expense 480,011 446,214 490,154 General and administrative expense 221,511 199,024 199,597 Total selling, general and administrative expense 701,522 645,238 689,751 Other segment (expense) income (1) ( 12,292 ) ( 49,599 ) 69,346 NET INCOME FROM CONTINUING OPERATIONS 241,664 372,138 519,157 LOSS ON DISCONTINUED OPERATIONS, NET OF TAX — ( 5,068 ) ( 163,400 ) NET INCOME $ 241,664 $ 367,070 $ 355,757 (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)”. 19. COMMITMENTS AND CONTINGENT LIABILITIES Litigation From time to time, the Company may be subject to legal proceedings and claims in the ordinary course of business. On a quarterly basis, the Company reviews the status of each significant matter and assesses its potential financial exposure. If the potential loss from any claim, asserted or unasserted, or legal proceeding is considered probable and the amount can be reasonably estimated, the Company would accrue a liability for the estimated loss. Because of uncertainties related to claims and litigation, accruals are based on the Company’s best estimates, utilizing all available information. On a periodic basis, as additional information becomes available, or based on specific events such as the outcome of litigation or settlement of claims, the Company may reassess the potential liability related to these matters and may revise these estimates, which could result in material adverse adjustments to the Company’s operating results. At December 31, 2025, there were no potential material losses from claims, asserted or unasserted, or legal proceedings that the Company determined were probable of occurring. INVEGA TRINZA ANDA Litigation In September 2020, Janssen Pharmaceutica, Janssen Pharmaceuticals, Inc., and Janssen Research & Development, LLC initiated a patent infringement lawsuit in the U.S. 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. Food and Drug Administration (“FDA”) to market a generic version of F- 33 ALKERMES PLC AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) INVEGA TRINZA before the expiration of U.S. Patent No. 10,143,693 (the “’693 Patent”). Requested judicial remedies include recovery of litigation costs and injunctive relief. 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. In March 2025, the U.S. Court of Appeals for the Federal Circuit (the “Federal Circuit Court”) issued a decision affirming the NJ District Court opinion. 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. The Company was not a party to this proceeding. LYBALVI ANDA Litigation 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. District Court for the District of Delaware. In September 2025, APIL and Alkermes, Inc. filed a patent infringement lawsuit against MSN (as defined herein) in the NJ District Court. As used herein, Teva refers to Teva Pharmaceuticals, Inc., Apotex refers to Apotex Inc. and Apotex Corp., and MSN refers to MSN Laboratories Private Limited (“MSN Labs”), MSN Pharmaceuticals, Inc. and Novadoz Pharmaceuticals LLC. 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. prior to the expiration of certain of the Company’s U.S. patents. 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. The Company intends to vigorously defend its intellectual property. 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”). Antitrust Class Action Litigation On October 2, 2025, Value Drug Company filed a complaint asserting antitrust claims against Alkermes, Inc. and APIL in the U.S. District Court for the District of Massachusetts (the “MA District Court”). The complaint was filed on behalf of a putative class of direct purchasers of VIVITROL and alleges that the Company’s U.S. Patent No. 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. The lawsuit seeks, among other things, unspecified money damages plus interest, reasonable attorneys’ fees and other costs. The Company intends to vigorously defend itself in this matter. On December 19, 2025, Alkermes, Inc. and APIL filed a motion to dismiss the complaint with the MA District Court. Government Matters The Company has received a civil investigative demand from a U.S. state governmental authority. The Company is cooperating with the investigation. Product Liability and Other Legal Proceedings 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. In addition, in January 2023, Acorda Therapeutics, Inc. (“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. In September 2023, Acorda filed a notice of appeal of the NY Southern District Court decision to the Federal Circuit Court. 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. Purchase Commitments The Company has open purchase orders for plant and equipment as part of its normal course of business. At December 31, 2025, the Company’s open purchase orders were $ 17.7 million for capital commitments. F- 34