Alkermes stock rating reiterated as Buy by Stifel after positive narcolepsy data

Published 21/07/2025, 12:48
Alkermes stock rating reiterated as Buy by Stifel after positive narcolepsy data

Investing.com - Stifel has reiterated its Buy rating and $42.00 price target on Alkermes (NASDAQ:ALKS), representing a 44% upside from the current price of $29.22, following positive top-line data for its narcolepsy treatment ALKS2680, also known as "Alixorexton." According to InvestingPro data, the company maintains excellent financial health with a GREAT overall score.

The drug showed positive results in a clinical trial for Narcolepsy Type-1, with multiple key clinical endpoints achieving statistical significance across all tested doses. The exception was cataplexy attacks, which showed numerical improvement at all doses but only reached statistical significance at the mid-dose level.

The trial’s safety profile appeared favorable, with 95% of participants choosing to enter the open-label extension study. Alkermes reported no treatment-related signals in hepatic or renal parameters, vital signs, or ophthalmic examinations.

Stifel noted that the positive outcome was widely anticipated given prior Phase 1b data in Narcolepsy Type-1 and broader support from Takeda. The investment firm remains generally unconcerned about potential visual adverse events, though complete data has not yet been released.

Full details of the trial results, including comprehensive safety data and specific efficacy measurements, are still pending release from Alkermes.

In other recent news, Alkermes has announced promising results from its phase 2 trial of the narcolepsy treatment alixorexton. The drug showed significant improvements in wakefulness and excessive daytime sleepiness in patients with narcolepsy type 1, with no serious adverse events reported. Following these positive outcomes, Alkermes plans to move forward with a global phase 3 program. In related developments, Goldman Sachs initiated coverage on Alkermes with a Buy rating, citing potential growth from the company’s orexin receptor 2 agonist portfolio, including an estimated peak sales of $2.8 billion for their lead asset, ALKS 2680. Stifel also maintained its Buy rating for Alkermes, highlighting the expected success of ALKS 2680 in treating various orexin-related sleep disorders. UBS upgraded Alkermes to a Buy rating, raising its price target and expressing confidence in the drug’s market positioning for narcolepsy and idiopathic hypersomnia. Meanwhile, RBC Capital maintained a Sector Perform rating, noting concerns about the safety profile of orexin receptor agonists but acknowledging the drug’s significant wake-promoting effects.

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