JPMorgan Upgrades Alkermes As The Company Adds To Its Already Valuable Portfolio

A day after Alkermes Plc (NASDAQ: ALKS) revealed positive results from ALKS 5461 for major depressive disorder treatment, JPMorgan upgraded the shares from Neutral to an Overweight rating. The firm also boosted the target price from $51 to $78 on the company's shares, saying that the drug candidate should increase the valuable portfolio.

The boosted target price implied upside potentials of more than 30 percent even after recording about 34 percent jump in the stock price on October 21.

Analysts Cory Krasimov and Whitney Ijem believe that 5461's positive results boosted the possibility of adding one more key driver to the kitty. The company's phase three study met its primary endpoint cheering investors.

Related Link: Cerecor Shares Moving In Sympathy To Positive Alkermes' Trial News

In a research note, the brokerage viewed, "Importantly 5461 continued to be well tolerated, in line with prior studies. ALKS plans to meet with the FDA in early 1Q17 to discuss filing, and we continue to think positive FORWARD-5 data makes the totality of the data approvable [...] Further confirmation of an NDA filing based on data in hand, as well as, clarity on the filing timeline will be key in 2017."

JPMorgan is attracted to Alkermes' combination of legacy base business pointing out the Vivtrol's potentials for growth and launch of Aristada's schizophrenia apart from the depression drug. The firm lifted its expectations of Vivitrol's revenue from $315 million to $560 million in 2022.

At last check, the stock was up 34.62 percent on the day to $58.58.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!