Alkermes narcolepsy drug ‘could be best-in-class,’ says Mizuho

Mizuho analyst Uy Ear says Alkermes’ ALKS 2680 “could be best-in-class” following this morning’s data release from the Phase 1b trial in the narcolepsy type 2 cohort. The orexin 2 receptor agonist has a first-mover advantage to broadly treat narcolepsy, the analyst tells investors in a research note. The firm believes the efficacy data from narcolepsy type 2 and idiopathic hypersomnia were strong, with wakefulness improved from baseline at every dose in both cohorts in a dose dependent manner. In addition, the “clean” safety data in these cohorts should help mitigate concerns about ALKS 2680’s commercial viability, notes Mizuho. It believes the drug is underappreciated and keeps a Buy rating on Alkermes with a $68 price target.