In recent transactions reported to the Securities and Exchange Commission, Craig C. Hopkinson, Executive Vice President of Research & Development and Chief Medical (TASE:PMCN) Officer at Alkermes plc (NASDAQ:ALKS), sold 9,221 shares of the company's ordinary stock. The shares were sold at a price of $31.50 each, amounting to a total transaction value of $290,461. The transaction occurred as the stock trades near its 52-week high of $32.88, having delivered a strong 29% return over the past six months. Following this sale, Hopkinson retains ownership of 59,730 shares in the company. This transaction was conducted under a pre-established Rule 10b5-1 trading plan, which allows insiders to set up a predetermined schedule for selling stocks to avoid potential conflicts of interest. For comprehensive insider trading analysis and 11 additional key insights about ALKS, visit InvestingPro.
In other recent news, Alkermes has been the focus of various analyst firms due to its promising developmental drug, ALKS-2680, and strong financial performance. Piper Sandler maintained an Overweight rating for the company, despite a slight adjustment in the price target to $37.00. Mizuho (NYSE:MFG) Securities also showed confidence in Alkermes, raising its price target from $35.00 to $40.00 and keeping an Outperform rating. Stifel upgraded its rating to Buy, lifting the target to $36.00, while H.C. Wainwright maintained a Neutral stance with a steady price target of $37.00.
Alkermes reported an 18% year-over-year increase in Q3 2024 revenues, reaching $378.1 million, primarily driven by its proprietary products, VIVITROL, ARISTADA, and LYBALVI. The non-GAAP earnings per share for the quarter were $0.72, slightly above the estimated $0.70. The company also plans to increase research and development expenses in 2025, primarily for the development of their orexin pipeline and promotional efforts for Lybalvi, their treatment for schizophrenia and bipolar I disorder.
The company's developmental drug, ALKS 2680, an OX2R agonist, is moving towards Phase 2 readouts, with significant potential to impact the branded narcolepsy and idiopathic hypersomnia markets. Analysts from Piper Sandler and Mizuho Securities highlighted the potential of ALKS 2680, with Mizuho's sum-of-the-parts analysis placing a $22 per share value on the drug.
Despite an expected reduction in EBITDA due to changes in manufacturing and royalty revenues, Alkermes remains focused on its growth strategy. The company's commitment to driving growth through its proprietary product portfolio and strategic focus on future profitability and expansion is reflected in the continued confidence expressed by various analyst firms.
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