Alkermes orexin 2 receptor story ignored by investors, says Jefferies

Jefferies analyst Akash Tewari believes orexin 2 receptors will shift the narcolepsy treatment paradigm. The updated ALKS 2680 narcolepsy type 1 data presented by Alkermes looks consistent with the last data cut, the analyst tells investors in a research note. The firm continues to continue to believe ALKS 2680 will show “best-in-class efficacy” in both narcolepsy type 1 and 2. It has been “frustrating” to see the orexin 2 receptor story remain largely ignored by investors, contends Jefferies. It says that while the near-term focus for Alkermes investors remains on the Lybalvi launch, orexin 2 receptors “are primed to be a game changing regimen” for patients with an acceptable safety profile and an efficacy profile that’s very strong in narcolepsy. The firm keeps a Buy rating on Alkermes with a $50 price target.