- Piper Sandler has upgraded Alkermes ( NASDAQ: ALKS ) to overweight following news that the company plans to spin-off its oncology business , a move that would lead to a leaner cost structure to support a pure-play neuropsychiatry company.
- The firm upped its price target to $30 from $26 (~25% upside based on Wednesday's close).
- Analyst David Amsellem said that Alkermes' ( ALKS ) neuropsychiatry business, along with revenue from partnered products, can drive attractive cash flows.
- He added that in Q3, the neuropsychiatry business performed well, with Lybalvi (olanzapine and samidorphan) sales of $27.1M, up 35% versus Q2 sales, and beating the Street estimate of $24.4M.
- "The separation would essentially birth a restructured, profitable neuropsychiatry business," Amsellem noted.
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In its Q3 financial results, Alkermes ( ALKS ) missed on the top and bottom lines .
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Alkermes upgraded to overweight at Piper Sandler on oncology business separation