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Alkermes: Hold Rating Amid Declining Base Business Value and Optimistic Orexin Outlook

Alkermes: Hold Rating Amid Declining Base Business Value and Optimistic Orexin Outlook

Marc Goodman, an analyst from Leerink Partners, maintained the Hold rating on Alkermes (ALKSResearch Report). The associated price target is $30.00.

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Marc Goodman has given his Hold rating due to a combination of factors influencing Alkermes’ current financial situation and future prospects. One key aspect is the company’s base business value, which appears to be declining even as the stock price reflects a more optimistic outlook, especially regarding the potential of their orexin franchise. While there is optimism surrounding the orexin market, the current stock price already accounts for significant future sales, which complicates the assessment of further value growth in Alkermes.
Another consideration is the recent performance and future guidance for Alkermes’ marketed products. Although there was an inventory and gross-to-net favorability that boosted sales recently, these are expected to normalize, leading to a predicted decline in sales in the upcoming quarter. Furthermore, the guidance for 2025 sales is slightly below consensus expectations, further contributing to the conservative outlook. Upcoming clinical data and developments, particularly in the orexin space, remain crucial for future evaluations.

Goodman covers the Healthcare sector, focusing on stocks such as Biohaven Ltd., Axsome Therapeutics, and ACADIA Pharmaceuticals. According to TipRanks, Goodman has an average return of 6.1% and a 46.67% success rate on recommended stocks.

In another report released yesterday, H.C. Wainwright also maintained a Hold rating on the stock with a $46.00 price target.

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