Needham sees Alkermes trading up on today’s narcolepsy data

Needham says Alkermes (ALKS) disclosed the VIBRANCE-1 Phase 2 study topline results for alixorexton in narcolepsy type 1 patients where the data was statistically significant across all doses on the primary endpoint compared to placebo. The data are “mostly positive” for alixorexton, especially as there were no new safety concerns with repeat dosing but it is unclear whether any of the doses were over 30 minutes, the analyst tells investors in a research note. However, with only one middle dose achieving reduction in weekly cataplexy rate, there are “some limitations in efficacy and lack of dose-dependent response,” contends Needham. The firm thinks the stock will trade up today, but expects the reaction to be limited by the lack of detailed data on both efficacy and safety. It has a Buy rating on Alkermes with a $45 price target The stock in morning trading is down 9%, or $2.66, to $26.56.