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Baird initiated coverage of Alkermes (NASDAQ:ALKS) with an outperform rating, citing profitability and its narcolepsy drug candidate ALKS 2680.
The investment firm said the floor value for the stock was supported by the company’s 2024 revenue estimate of $1.5B to $1.6B and more than $800M in cash. It’s modeled revenue dropping to only as low as $1.3B in 2027 due to expected generic competition for its drug Vivitrol.
Baird attributed around $7 per share for its drug candidate 2680 in the treatment of narcolepsy type 1, with opportunities in narcolepsy type 2 and idiopathic hypersomnia as upside.
Baird set its price target for the stock at $37.