Alkermes, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Douglas Tsao from H.C. Wainwright maintained a Hold rating on the stock and has a $46.00 price target.
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Douglas Tsao has given his Hold rating due to a combination of factors surrounding Alkermes’ current performance and future prospects. The company has shown strong revenue growth, particularly in its commercial portfolio, with significant increases in sales of key products like Lybalvi and Aristada. However, the focus is shifting towards the orexin program, especially with the promising results from the Vibrance-1 study on alixorexton, which showed efficacy in wakefulness and cognition.
Despite these positive developments, there remain uncertainties, particularly regarding the detailed data on cataplexy and safety, which are crucial for the Phase 3 design. The upcoming data from the Vibrance-2 study and the anticipated meeting with the FDA will be pivotal in shaping the future trajectory of Alkermes’ orexin program. These uncertainties, along with the need for further validation in ongoing studies, contribute to the Hold rating as the market awaits more comprehensive data to fully assess the potential of Alkermes’ pipeline.
In another report released yesterday, Bank of America Securities also maintained a Hold rating on the stock with a $33.00 price target.