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Alkermes (ALKS) Stock Up 15% in Six Months: Here's Why

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Shares of Alkermes (ALKS - Free Report)  have surged 14.7% in the past six months against the industry’s 2.8% decline.

Zacks Investment Research
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The upside was attributed to strong sales performance of its proprietary product, Lybalvi, for treating schizophrenia or bipolar I disorder in adults, the company’s decision to separate its oncology unit, and the rapid progress of its pipeline programs on neurological disorders.

Lybalvi’s net revenues for 2022 were $96 million, higher than the company’s 2022 guidance of $88–$95 million. This was driven by the product’s strong market demand.

Alkermes is planning an investment in a direct-to-consumer campaign, in order to support the launch of Lybalvi and increase its market awareness for neurological disorders. 

For 2023, the company expects Lybalvi’s net revenues to be between $180 and $205 million, indicating a significant increase from the year-ago level.

Alkermes is also evaluating the long-term safety and tolerability of olanzapine and samidorphan drugs in pediatric patients to treat schizophrenia and Bipolar I disorder. It is currently enrolling patients in the phase III of clinical studies.

Alkermes’ other marketed drugs like Vivitrol (alcohol and opioid dependence) and Aristada (schizophrenia) are also generating strong revenues. This, along with manufacturing and/or royalty revenues on net sales of products commercialized by the company’s partners, is driving the company’s top line.

The company is also working on the development of ALKS 2680, an orexin 2 receptor agonist program in phase I clinical study, to treat narcolepsy and other sleep disorders.

Last November, Alkermes announced its plans to separate the company’s existing oncology business into an independent, publicly-traded company, as part of an ongoing strategic review. The separation will simplify capital allocation and ensure a long-term shareholder base. It would also help in strategic focus on each business with separate management teams.

The separation is expected to be completed by the second half of 2023.

Zacks Rank & Stocks to Consider

Currently, Alkermes has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the same sector are Kala Pharmaceuticals (KALA - Free Report) , CRISPR Therapeutics (CRSP - Free Report) and Horizon Therapeutics , each holding a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Kala Pharmaceuticals’ loss per share estimates have narrowed from $19.67 to $15.35 for 2023 and from $14.41 to $13.12 for 2024, in the past 60 days. The stock has gained 8.3% in the last six months.

KALA’s earnings beat estimates in two of the last four quarters and missed the mark in the other two, the average surprise being 11.56%.

CRISPR Therapeutics' loss per share estimates for 2023 have narrowed from $8.21 to $7.54, in the past 60 days.

CRSP's earnings beat estimates in two of the last four quarters and missed the mark in the other two, the average surprise being 3.19%. The stock has plunged 35.9% in the last six months.

Horizon Therapeutics' earnings per share (EPS) estimates have increased from $5.43 to $5.73 for 2023, in the past 60 days. The stock has gained 75% in the last six months.

HZNP’s earnings beat estimates in three of the last four quarters and missed the mark once, the average surprise being 7.95%.

 


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