Alkermes gets few more years of Vivitrol exclusivity, says Piper Sandler

Piper Sandler reiterates an Overweight rating on Alkermes with a $37 price target after the company settled its litigation with Teva (TEVA) regarding a generic of Vivitrol. Vivitrol will account for near 25% of Alkermes’ 2023 sales, and the product likely fairly attractive margins given its more limited promotion-intensity relative to the company’s psychiatry asset, the analyst tells investors in a research note. “Put simply, a few more years of Vivitrol exclusivity matters,” contends Piper. The firm says Alkermes is getting another three years of exclusivity on a brand that is annualizing to just north of $400M in net sales. Piper believes more cash generation for Alkermes can enable it to “cast a somewhat wider net” for deals.