In a report released today, Douglas Tsao from H.C. Wainwright reiterated a Hold rating on Alkermes, with a price target of $46.00.
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Douglas Tsao has given his Hold rating due to a combination of factors related to Alkermes’ recent clinical trial data and market positioning. The Phase 2 data for alixorexton in narcolepsy type 1 (NT1) showed promising results in terms of dosing flexibility and efficacy, particularly in wakefulness measures. However, there were mixed outcomes in cataplexy reduction, with significant variability in patient-reported outcomes. This inconsistency, along with the competitive landscape, contributes to a cautious outlook.
Moreover, while the safety and tolerability profile of alixorexton is competitive, concerns about visual side effects, albeit mild and transient, remain. The upcoming results from the Vibrance-2 study in NT2 will be crucial for further validation. The valuation reflects a balanced view of potential risks and rewards, with considerations of clinical development, regulatory hurdles, and market execution challenges. These elements collectively inform the Neutral rating and the price target of $46.