Alkermes downgraded to Sell from Neutral at UBS

UBS downgraded Alkermes to Sell from Neutral with an unchanged price target of $25. The shares are trading close to their 52-week high and there is a negative risk/reward from pipeline updates and launch performance, the analyst tells investors in a research note. Alkermes’ current valuation is pricing in $2.2B in 2029 sales, versus UBS’s base case of $1.6B, indicating perfection on the orexin clinical outcome and solid Lybalvi growth, contends the firm. UBS is cautious on the orexin Phase 1 read-out during the first half of 2024 expects Lybalvi misses and consensus downward revisions.