Centessa acquisition ‘may help rouse’ Alkermes shares, says RBC Capital

After Eli Lilly (LLY) announced the intent to acquire Centessa (CNTA) for $6.3B in cash plus an additional $1.5B split across 3 contingent value rights, RBC Capital said the deal highlights large pharma interest in the sleep space and “underscores what could likely be a large indication,” which is “favorable” for Alkermes (ALKS). The firm, which thinks Alkermes’ current share price is undervaluing the orexin program alone given comps, notwithstanding the profitable core business, has an Outperform rating and $45 price target on the shares.