- Piper Sandler has initiated Alkermes ( NASDAQ: ALKS ) with a neutral rating saying that its atypical antipsychotic Lybalvi (olanzapine and samidorphan) will not achieve blockbuster status.
- The firm has a $26 price target (~2% downside based on Monday's close).
- Analyst David Amsellem projects peak sales of Lybalvi of $700M-$800M.
- Olanzapine is the generic name for the atypical antipsychotic Zyprexa. Amsellem said that one issue with Lybalzi is it is not "particularly differentiated from legacy Zyprexa in terms of its metabolic safety profile."
- He sees a potential issue with the company's cost structure, noting that a "major oncology-focused R&D that has a questionable fit with the rest of the business."
- "We would like to see ALKS focus on optimizing overall profitability (e.g., further leveraging its neuropsychiatry- focused commercial infrastructure) in order for us to get more constructive," Amsellem added.
- Seeking Alpha's Quant Rating views Alkermes ( ALKS ) as a hold with high marks for growth, revisions, and profitabiity .
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Alkermes initiated at neutral at Piper Sandler as company in transition