Alkermes Inc.: Strong Buy Rating Driven by Robust Financial Performance and Promising Pipeline Potential

TD Cowen analyst Joseph Thome maintained a Buy rating on Alkermes (ALKS – Research Report) today and set a price target of $38.00.

Joseph Thome has given his Buy rating due to a combination of factors including Alkermes’ recent financial performance and the potential of its pipeline products. The company’s Q1 revenue exceeded expectations, driven by strong sales of Vivitrol, Aristada, and Lybalvi, and it has maintained its financial guidance for FY25. This financial stability provides a solid foundation for future growth.
Furthermore, Alkermes is advancing its ALKS 2680 program, with promising data expected from its Phase II studies in sleep disorders. The anticipation of positive results from these studies, particularly in NT1 patients, suggests significant market potential and could drive substantial upside for the stock. Thome sees at least a 30% upside based on favorable NT1 data alone, with additional gains possible if similar success is achieved in NT2 patients. This optimism is bolstered by strong support from key opinion leaders and the substantial market opportunity for orexin-based therapies.