Akash Tewari, an analyst from Jefferies, maintained the Buy rating on Alkermes (ALKS – Research Report). The associated price target was raised to $50.00.
Akash Tewari’s rating is based on a comprehensive analysis of Alkermes’s promising clinical data for their OX2 (ALKS-2680) candidate. He highlights the impressive efficacy shown in Narcolepsy Type 2 (NT2) patients, where both 12mg and 25mg doses demonstrated significant improvements in mean wakefulness times compared to placebo, with no substantial dose response observed between the two. Despite encountering mild and transient cases of visual disturbances at the 25mg dosage, Tewari finds it encouraging that these did not necessitate driving restrictions in phase 2 trials, signaling a potential therapeutic window for the drug. The decision by Alkermes to progress with doses below 25mg in the next phase due to the lack of dose response is also seen as a prudent move.
Furthermore, Tewari is optimistic about the market potential of ALKS-2680, increasing his projected sales from $700 million to $1 billion. He notes the management’s strategy to enrich phase 2 trials by including patients with lower baseline mean wakefulness scores, which is expected to yield more pronounced efficacy results. This strategic approach, coupled with a clear therapeutic window and the absence of driving impairments, positions Alkermes favorably in the market. Tewari also mentions the discontinuation of a competing drug, TAK-861, due to dosing limitations related to liver toxicity, which may reduce competition and bolster the case for Alkermes’s OX2 candidate. These factors collectively substantiate Tewari’s Buy rating for Alkermes’s stock.
In another report released on April 2, Mizuho Securities also maintained a Buy rating on the stock with a $35.00 price target.
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Alkermes (ALKS) Company Description:
Alkermes Plc is a biopharmaceutical company, which engages in the development, research, and commercialization of medicines that are designed to address unmet medical needs of patients in major therapeutic areas. Its products include Aristada, which is used for the treatment of schizophrenia in adults; and Vivitrol, which is an injectable medication for the treatment of alcohol dependence and for the prevention of relapse to opioid dependence, following opioid detoxification. The company was founded on May 4, 2011 and is headquartered in Dublin, Ireland.
