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Baird initiated coverage of Alkermes (NASDAQ:ALKS) with an outperform rating, citing profitability and narcolepsy drug candidate ALKS 2680.
The investment firm said the stock’s low value is supported by the company’s 2024 revenue estimate of between $1.5 billion and $1.6 billion. more than $800 million in cash. Revenue is expected to fall to just $1.3 billion in 2027 due to expected generic competition for its drug Vivitrol.
Baird attributed about $7 per share to its 2680 drug candidate in treating narcolepsy type 1, with upside opportunities in narcolepsy type 2 and idiopathic hypersomnia.
Baird set a target price for the stock at $37.