Fannie Mae, Freddie Mac shares tumble after conservatorship comments
Investing.com - H.C. Wainwright has reiterated its Neutral rating and $46.00 price target on Alkermes (NASDAQ:ALKS), a pharmaceutical company currently showing strong financial health with an impressive 84% gross margin, following the company’s Phase 2 data for alixorextan in narcolepsy type 1 patients. According to InvestingPro data, the company maintains a robust balance sheet with more cash than debt, suggesting solid financial positioning for its drug development initiatives.
The research firm noted that the Phase 2 data demonstrated significant improvements in wakefulness at all doses tested. The drug also showed efficacy in improving symptoms such as fatigue and cognition, which could significantly enhance patients’ quality of life and potentially differentiate alixorextan from competitors in the orexin-2 receptor space. With analyst targets ranging from $30 to $54, and the stock currently trading near $27, InvestingPro analysis indicates the stock may be undervalued.
Alkermes management emphasized that wakefulness, fatigue, and cognition are distinct domains, with fatigue and cognition being the most common complaints among narcolepsy type 1 patients. This contrasts with Takeda’s recent positive Phase 3 data for oveporexton, which did not mention improvements in these specific areas.
The findings on cognition are also encouraging for Alkermes’ "Project Saturn," which is exploring the orexin-2 mechanism’s potential applications in neuropsychiatry, including mood disorders and possibly ADHD, where interesting preclinical findings have been observed.
Alixorexton was reported to be generally well-tolerated, with no treatment-related safety signals observed in hepatic or renal parameters, vital signs, or ophthalmic exams, with over 95% of patients continuing into the seven-week open-label extension. Detailed datasets will be presented at the World Sleep Congress in Singapore, September 5-10. Despite a recent 7.6% decline over the past week, the company maintains strong fundamentals with a healthy current ratio of 3.33. For deeper insights into Alkermes’ financial health and growth potential, including 12 additional ProTips and comprehensive analysis, visit InvestingPro.
In other recent news, Alkermes announced positive results from its Phase 2 trial for its narcolepsy treatment, alixorexton. The trial demonstrated statistically significant improvements in wakefulness for patients with narcolepsy type 1, meeting the primary endpoint across all tested doses. Following this announcement, Jefferies raised its price target for Alkermes to $54, maintaining a Buy rating due to the promising clinical data. Stifel also reiterated its Buy rating with a $42 price target, highlighting the drug’s success in achieving statistical significance in multiple key clinical endpoints.
Meanwhile, BofA Securities maintained a Neutral rating with a $35 price target after the trial results, despite acknowledging the clinically meaningful improvements demonstrated in the study. Goldman Sachs initiated coverage with a Buy rating and a $43 price target, citing potential growth from Alkermes’ orexin receptor 2 agonist portfolio. The investment bank noted the company’s established commercial portfolio and its fiscal year 2025 revenue guidance of $1,340-1,430 million. These developments indicate a range of analyst perspectives on Alkermes’ potential in the narcolepsy treatment market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.