Fiserv earnings missed by $0.61, revenue fell short of estimates
Investing.com - Mizuho raised its price target on Alkermes (NASDAQ:ALKS) to $45.00 from $40.00 on Monday, while maintaining an Outperform rating on the biopharmaceutical company’s stock. The new target aligns with broader analyst sentiment, with targets ranging from $30 to $54. According to InvestingPro analysis, the stock appears undervalued at its current price of $29.80.
The price target increase follows Mizuho’s analysis of the proposed merger between Alkermes and Avadel, which the firm views as "strategically synergistic" and positions Alkermes as a leading player in sleep medicine. The company’s strong financial health score of "GREAT" on InvestingPro and robust gross margin of 85% support its expansion capabilities.
Mizuho highlighted that Avadel’s Lumryz, the only once-nightly oxybate for narcolepsy, will add more than $270 million in growing sales and should improve Alkermes’ top-line outlook, particularly ahead of expected generic competition for Vivitrol in 2027.
The research firm noted that Avadel’s commercial infrastructure would allow Alkermes to establish a presence in sleep medicine before Takeda’s OX2R agonist oveporexton launch, while also de-risking alixorexton’s launch by leveraging Avadel’s market access and physician relationships.
Mizuho also pointed out potential synergies across sales and operations, noting that oxybates and OX2R agonists are complementary, and stated it does not believe the timing of the deal signals Alkermes losing confidence in the alixorexton program.
In other recent news, Alkermes announced its acquisition of Avadel Pharmaceuticals in a deal valued at up to $2.1 billion. This transaction includes an all-cash payment of $18.50 per share and a contingent value right of $1.50 per share, contingent on FDA approval of Avadel’s LUMRYZ for idiopathic hypersomnia by the end of 2028. The acquisition will integrate Avadel’s FDA-approved LUMRYZ, an oxybate treatment for narcolepsy, into Alkermes’ portfolio. In response to this development, RBC Capital raised its price target for Alkermes to $47.00, maintaining an Outperform rating. Meanwhile, H.C. Wainwright reiterated a Neutral rating on Alkermes, with a price target of $46.00.
Additionally, Jazz Pharmaceuticals reached a settlement with Avadel over oxybate franchises, agreeing to a $90 million upfront payment and receiving royalties on Lumryz sales. RBC Capital reiterated its Outperform rating on Jazz Pharmaceuticals, with a price target of $151.00. These recent developments highlight significant strategic moves and financial transactions involving Alkermes, Avadel, and Jazz Pharmaceuticals.
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