Alkermes narcolepsy data better than expected, says Stifel

Stifel says the efficacy of Alkermes’ ALKS2680 in narcolepsy type 2 and idiopathic hypersomnia, albeit in a small, single day study, look promising and better than expected, showing a very clear dose response on wakefulness. While the effect size is smaller than what was seen in narcolepsy type 1, it’s important to appreciate that the baseline sleep latency in the type 2 populations is different, which on the Maintenance of Wakefulness Test “creates a ceiling effect,” the analyst tells investors in a research note. The firm believes the efficacy data look overall clean and encouraging. It has a Hold rating on Alkermes with a $33 price target. The stock in premarket trading is up 7% to $27.73.