Needham analyst Ami Fadia reiterated a Buy rating on Alkermes today and set a price target of $43.00.
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Ami Fadia has given her Buy rating due to a combination of factors that enhance Alkermes’ strategic positioning. The acquisition of Avadel Pharmaceuticals is a significant move, providing Alkermes with a competitive edge in the sleep disorder market. This is primarily because Alkermes can utilize Avadel’s established commercial infrastructure, particularly with the narcolepsy treatment Lumryz.
Furthermore, the acquisition is immediately beneficial financially, adding a market-ready product to Alkermes’ portfolio. Lumryz is not only approved for narcolepsy but also has the potential to expand into other indications such as idiopathic hypersomnia (IH). Additionally, Alkermes is in a unique position to explore synergies between oxybate and orexin mechanisms, which could lead to innovative treatment combinations. The deal is anticipated to close in the first quarter of 2026, pending regulatory and shareholder approvals, and Alkermes is expected to update its financial models accordingly.
Fadia covers the Healthcare sector, focusing on stocks such as Immuneering, Biogen, and Jazz Pharmaceuticals. According to TipRanks, Fadia has an average return of 16.3% and a 51.40% success rate on recommended stocks.
In another report released on October 16, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $37.00 price target.