Stifel: 'ALKS Shares Should Get a Boost on CNTA Disclosure'

Stifel analyst Paul Matteis reiterated a Buy rating and $42.00 price target on Alkermes (NASDAQ: ALKS).

The analyst comments "We expect ALKS shares to trade higher today on some relief that the initial clinical disclosure from CNTA's orexin program does not look superior to what we've seen from ALKS2680. The fear/overhang on ALKS was that CNTA could have a much superior profile (we always viewed this as theoretical); that said, the NT1 efficacy disclosure (while it lacks some granularity) does not point to better efficacy. Conversely, CNTA also showed some positive data in NT2/IH--which we see as validating for the class--but again the effect is not out of this world, and for ALKS it lays out what we see as a realistic bar. Ultimately, we think orexins could be a significant blockbuster class and there is room for many players--ALKS, CNTA (Not covered) and Takeda (Not covered) included. But again, the important context here is that for ALKS, there were concerns that CNTA could be clearly superior, which we don't see."

For an analyst ratings summary and ratings history on Alkermes click here. For more ratings news on Alkermes click here.

Shares of Alkermes closed at $30.39 yesterday.

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