Alkermes upgraded at RBC Capital Markets ahead of key catalyst

 Alkermes (NASDAQ:ALKS) shares spiked on Friday after RBC Capital Markets upgraded the Irish biotech to Outperform from Sector Perform, citing a compelling buying opportunity ahead of a key late-stage trial readout for the company’s sleep therapy, alixorexton.

RBC analyst Leonid Timashev highlighted the stock’s decline from the day Alkermes (NASDAQ:ALKS) reported mid-stage trial data for the once-daily oral therapy against narcolepsy type 1 (NT1), a sleep disorder.

“Despite the negative reaction (-7% since the presentation) to the NT1 data, we think it demonstrated that alixorexton has reproducible and clinically meaningful efficacy in NT1, and a tolerable profile, taking major safety risks off the table,” Timashev wrote.

With Alkermes (NASDAQ:ALKS) set to disclose mid-stage data for the drug this fall from its Vibrance-2 study in patients with narcolepsy type 2, the analyst raising his price target to $44 from $42 per share indicated a buying opportunity.

“Given the sell-off post NT1 data, and our belief that sentiment continues to be bearish on NT2 and ALKS's potential market positioning, we see a buying opportunity into the NT2 data,” Timashev wrote.

https://www.msn.com/en-us/money/markets/alkermes-upgraded-at-rbc-capital-markets-ahead-of-key-catalyst/ar-AA1Nn9yq