Leerink Partners analyst Marc Goodman has maintained their neutral stance on ALKS stock, giving a Hold rating on July 21.
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Marc Goodman has given his Hold rating due to a combination of factors surrounding Alkermes’s recent drug update. The top-line results for alixorexton were generally positive, showing normative ranges in key sleep tests, but the lack of statistically significant effects on weekly cataplexy rates for two doses raised concerns. This discrepancy is puzzling, especially since the drug’s mechanism of action is supposed to address cataplexy directly.
Additionally, the absence of detailed data, as the open-label extension is ongoing, has led to investor skepticism, contributing to a decline in stock value. While initial safety updates are promising, the lack of disclosure on certain potential side effects like visual disturbances adds to the uncertainty. Despite these issues, the high enrollment rate in the ongoing study suggests a favorable tolerability profile, and the company is progressing to Phase 3 trials, which adds a layer of optimism.
In another report released on July 21, Bank of America Securities also maintained a Hold rating on the stock with a $35.00 price target.