Bank of America Securities analyst Jason Gerberry maintained a Hold rating on Alkermes yesterday and set a price target of $34.00.
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Jason Gerberry has given his Hold rating due to a combination of factors surrounding Alkermes’ recent clinical trial results and market positioning. The Phase 2 data for alixorexton in narcolepsy type-2 (NT2) showed mixed results, with efficacy not reaching the expected levels for clear differentiation from existing treatments. Although the safety profile appears acceptable, the efficacy did not meet the high expectations, leading to a cautious outlook.
Furthermore, while split dosing in Phase 3 trials may improve efficacy, it also removes some competitive advantages and could potentially increase insomnia risk. The current competitive landscape in the orexin space remains uncertain, with no clear leader emerging. Given these factors, Gerberry maintains a Neutral stance on Alkermes, reflecting a balanced risk/reward scenario with the stock trading close to its price objective.
In another report released yesterday, H.C. Wainwright also reiterated a Hold rating on the stock with a $46.00 price target.
ALKS’s price has also changed slightly for the past six months – from $31.270 to $31.405, which is a 0.43% increase.