UBS Remains Sidelined on Alkermes plc (ALKS) Following Failed ALKS 5461 Studies
UBS maintained a Neutral rating on Alkermes (NASDAQ: ALKS), and cut the price target to $36.00 (from $65.00). With the failure of FORWARD-3 and FORWARD-4 studies for ALKS 5461 in MDD, UBS believes that there is a very low possibility of getting this product approved even if the third trial is successful. Although management indicated in the press release that it believes there is still potential to file if the third study is successful, and there may be a possibility this is true, UBS thinks this is highly unlikely and choose to be skeptical for now.
Analyst Marc Goodman commented, "With the failure of the pivotal FORWARD-3 and FORWARD-4 studies for ALKS 5461 in MDD, we think there is a very low probability of getting this product approved even if the third trial is successful, and at this time, we are removing all sales and spending for ALKS 5461 from our model. Without any contribution from ALKS 5461, our DCF analysis yields a price target of $36 (down from $65) for ALKS."
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Shares of Alkermes closed at $33.69 yesterday.