Bank of America Securities analyst Jason Gerberry has reiterated their neutral stance on ALKS stock, giving a Hold rating on April 28.
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Jason Gerberry has given his Hold rating due to a combination of factors related to Alkermes’ current position and future prospects. The company’s orexin program, particularly the Vibrance-1 and Vibrance-2 studies, is a significant focus, with key data expected in early third quarter and fall, respectively. While the narcolepsy type-1 study is seen as lower risk and addressing a larger unmet need, there are uncertainties regarding the therapeutic potential in narcolepsy type-2 and idiopathic hypersomnia.
Additionally, Alkermes’ exposure to potential pharmaceutical tariffs appears minimal, given its manufacturing and importation practices. Despite the promising outlook for ALKS2680 in the narcolepsy market, which is considered a multi-billion dollar opportunity, much of this potential is already reflected in the current stock price. Competitive risks from other mid-to-late stage orexin competitors and uncertainties about the safety profile of ALKS2680 on chronic dosing further contribute to the Hold rating, as the risk and reward appear balanced at this time.
In another report released on April 28, UBS also maintained a Hold rating on the stock with a $33.00 price target.
ALKS’s price has also changed moderately for the past six months – from $26.470 to $30.580, which is a 15.53% increase.