Analyst Jason Gerberry of Bank of America Securities maintained a Hold rating on Alkermes, retaining the price target of $33.00.
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Jason Gerberry’s rating is based on a combination of factors surrounding Alkermes’ recent data presentation for their drug ALKS2680 in treating narcolepsy type-1 (NT1). While the data showed some positive aspects, such as a de-risking of the drug in a large and attractive market, the efficacy appeared similar to Takeda’s TAK-861, a competitor in the same category. Additionally, there are concerns about visual adverse events, which, although mild and transient, add uncertainty to the drug’s profile, especially as it moves towards testing in narcolepsy type-2 (NT2).
Moreover, the competitive landscape is crowded, with new data expected from other companies like Eisai and Centessa. The current market price seems to already reflect the potential of ALKS2680 in NT1, and the risk associated with NT2 and idiopathic hypersomnia (IH) studies presents a balanced risk/reward scenario. Consequently, Gerberry maintains a Hold rating, reflecting a cautious stance given the mixed data and competitive pressures.