Alkermes orexin Franchise can be ‘transformative,’ says H.C. Wainwright

H.C. Wainwright analyst Douglas Tsao is becoming increasingly positive on Alkermes’ orexin portfolio after the company hosted an analyst meeting to review its orexin strategy following “very strong” early Phase 1b data and ALKS-268, which the company has advanced into Phase 2 studies in narcolepsy type-1, narcolepsy type-2 and idopathic hypersomnia. The firm says the orexin-2 space has emerged as an area of focus given recognition of it as a target that plays a central role in the sleep wake cycle by promoting wakefulness. The orexin-2 mechanism has potential utility in neuropsychiatry indications beyond sleep, implying the franchise has peak sales potential far in excess of $2B, contends H.C. Wainwright. The firm says this has the potential to be “transformative” for Alkermes and change the investment community’s perception of the company as an innovator. It keeps a Buy rating on the shares with a $37 price target