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Alkermes' (ALKS) Schizophrenia, Bipolar I Disorder Drug Approved

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Alkermes plc (ALKS - Free Report) announced that the FDA has approved once-daily, oral atypical antipsychotic drug Lybalvi (olanzapine and samidorphan) for the treatment of adults with schizophrenia and adults who have bipolar I disorder. It is approved as a maintenance monotherapy or for the acute treatment of manic or mixed episodes, as monotherapy or an adjunct to lithium or valproate.

The company plans to launch Lybalvi in the fourth quarter of 2021. Successful commercialization of the drug will boost Alkermes’ growth prospects in the days ahead.

Shares of Alkermes were up 2.1% on Monday following the announcement. In fact, the stock has rallied 16.1% so far this year against the industry’s decrease of 4.1%.

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Schizophrenia is a chronic, severe and disabling brain disorder. Bipolar disorder is a brain disorder that causes unusual shifts in a person's mood, energy and ability to function.

The FDA nod for Lybalvi was based on data from 27 clinical studies, among which 18 investigated Lybalvi and nine evaluated samidorphan alone as well as safety and effectiveness of olanzapine in the treatment of bipolar I disorder and schizophrenia.

We note that in December 2020, the FDA accepted the Alkermes’ new drug application (“NDA”) resubmission for Lybalvi for the treatment of adults with schizophrenia and bipolar I disorder.

In November 2020, Alkermes received a Complete Response Letter from the FDA regarding its NDA for Lybalvi. Back then, the company had stated that the agency required the resolution of certain conditions related to the tablet coating process at its facility in Wilmington, OH before the drug could be approved.

Other available drugs in the schizophrenia and bipolar I disorder treatment market include AstraZeneca’s (AZN - Free Report) Seroquel XR, Johnson & Johnson's (JNJ - Free Report) Risperdal Consta and AbbVie’s (ABBV - Free Report) Vraylar.

Zacks Rank

Alkermes currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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