Uy Ear, an analyst from Mizuho Securities, maintained the Buy rating on Alkermes (ALKS – Research Report). The associated price target remains the same with $35.00.
Uy Ear has given his Buy rating due to a combination of factors that suggest Alkermes is positioning itself as a leader in the narcolepsy treatment market. The primary reason for the optimistic outlook is the promising data from the Phase 1b trials of ALKS 2680, which is being developed to treat both narcolepsy type 1 (NT1) and type 2 (NT2). This data has shown that the drug not only improves wakefulness in a dose-dependent manner but also has a favorable safety profile. The ability of ALKS 2680 to demonstrate significant improvements in sleep latency, without the adverse effects commonly associated with the class of orexin 2 receptor agonists, is particularly noteworthy.
Furthermore, the analyst acknowledges that while investors may remain cautious until further trials reinforce these findings, the potential for ALKS 2680 to be a best-in-class treatment with first-mover advantages in the narcolepsy space is significant. The planned initiation of a Phase 2 study in the second half of 2024 is expected to solidify the drug’s efficacy and safety profile, and this could be a pivotal moment for Alkermes. The statistical significance and clinical meaningfulness of the improvements seen at all three doses tested in both NT2 and idiopathic hypersomnia (IH) patients underscore the drug’s potential and, by extension, the investment opportunity in Alkermes’ stock.
In another report released today, Jefferies also maintained a Buy rating on the stock with a $50.00 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.
