Alkermes initiated with a Neutral at UBS

UBS initiated coverage of Alkermes with a Neutral rating and $31 price target. While Alkermes’ antipsychotic Lybalvi has had a strong successful early launch and the stock is up 25% over the last year, UBS struggles to see much upside or downside to Lybalvi consensus expectations going forward, the analyst tells investors in a research note. Additionally, the firm believes the upcoming Phase 1b data at World Sleep is unlikely to be a big reveal, and questions the long-term commercial opportunity for orexins, given sodium oxybate is likely to remain backbone therapy, plus narcolepsy pricing may collapse post-2026.