Alkermes (ALKS) PT Cut to $58 at Leerink Partners; Maintains 'Outperform'

Leerink Partners analyst Paul Matteis lowered his price target on Alkermes (NASDAQ: ALKS) to $58.00 (from $84.00) after the company released news on two of its Phase 3 programs for ALKS5461 missing their primary endpoints (PEs). The firm maintained an Outperform rating.

Matteis commented, ". While the company noted that FORWARD3 failed, mgmt stated that FORWARD4 showed a "strong trend" for 2:2 dose, which previously succeeded in Phase 2. Moreover, post-hoc analysis of FORWARD4 using a subtly different stats. analysis would have shown a statistically significant result for the 2:2 dose, and the company will now modify the stats plan and increase the "N" for FORWARD5. Management will update the timing of the FORWARD5 results on its 4Q15/FY15 earnings call. Given the recent outlook of the market, we have re-assessed our model and increased our discount rate, but even with this plus the removal of ALKS5461 from our model, we arrive at a $58 PT, suggesting that at ~$40 (premarket) the stock currently is oversold."

For an analyst ratings summary and ratings history on Alkermes click here. For more ratings news on Alkermes click here.

Shares of Alkermes closed at $60.42 yesterday.

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