Alkermes initiated with a Buy at Needham

Needham initiated coverage of Alkermes (ALKS) with a Buy rating and $45 price target The firm believes ALKS 2680’s upcoming Phase 2b readout is “largely de-risked” based on the Phase 1b data and can support a competitive profile that brings patients to normal range of wakefulness on efficacy with acceptable safety. ALKS 2680 can grow to over $2B in sales by 2030 and over $3.5B by 2035, as it will likely be the first or one of the first OX2R agonists to launch with a broad label across narcolepsy type 1 and 2 and idiopathic hypersomnia with multiple doses to tailor to individual patients, the analyst tells investors in a research note. Needham says Alkermes is well positioned to explore the potential beyond the three rare indications with ALKS 4510 and ALKS 7290 entering the clinic in 2025.