RBC says Centessa data highlights ‘impressive profile’ of Alkermes’ alixorexton

RBC Capital analyst Leonid Timashev notes Centessa (CNTA) reported Phase 2a data from initial dosing cohorts in a study of ORX750 in narcolepsy type 1 patients along with Q3 earnings. The firm sees the data removing “a key overhang” on Alkermes (ALKS) shares as it competes in the narcolepsy and sleep space with its lead asset alixorexton. The firm, which thinks today’s data from Centessa simultaneously validates the path forward for Alkermes’ alixorexton in narcolepsy type 2 and idiopathic hypersomnia while also highlighting that alixorexton is “a serious contender in the space,” would expect a 10% stock reaction for Alkermes. With a highly efficacious and tolerable profile, alixorexton could be positioned as a preferred agent in this large market, enabling greater than $2B in sales, and the firm would be buyers into strength and upcoming NT2 data, adds the analyst, who keeps an Outperform rating and $47 price target on Alkermes shares.