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Alkermes' (ALKS) Drug Portfolio Aids Growth, High Reliance a Woe
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Alkermes plc (ALKS - Free Report) has a portfolio of proprietary products focused on addiction, schizophrenia and bipolar I disorder, as well as other pipeline candidates that are being developed for neurodegenerative disorders and cancer.
The company derives revenues on net sales of its proprietary drugs Vivitrol (for alcohol and opioid dependence) and Aristada (schizophrenia), and manufacturing and royalty revenues on net sales of products commercialized by its partners.
In the first six months of 2021, Vivitrol generated sales worth $162.9 million and Aristada generated sales worth $127.8 million, reflecting year-over-year increases of 8.3% and 16.5%, respectively.
Shares of Alkermes have rallied 56.7% so far this year compared with the industry’s rise of 0.7%.
Image Source: Zacks Investment Research
In June 2021, the FDA approved the company's new drug application for Lybalvi (ALKS 3831) for the treatment of adults with schizophrenia and those suffering from bipolar I disorder. The company plans commercial launch of the drug in fourth-quarter 2021. Successful commercialization of the drug should boost Alkermes’ growth prospects in the days ahead.
Other than this, Alkermes has a robust pipeline. An important candidate in Alkermes’ pipeline is cancer immunotherapy nemvaleukin alfa (ALKS 4230), which is being evaluated under the ARTISTRY Clinical Development Program. The candidate is currently undergoing multiple studies for treating patients with solid tumors.
In August 2021, the FDA granted Fast Track designation to nemvaleukin alfa for the treatment of mucosal melanoma. In March 2021, the FDA also granted orphan drug designation to nemvaleukin alfa for the treatment of mucosal melanoma.
Alkermes has also partnered with pharma giant Merck (MRK - Free Report) for a phase III study to evaluate nemvaleukin alfa in combination with Keytruda for treating patients with platinum-resistant ovarian cancer.
We note that Alkermes is heavily dependent on manufacturing and royalty revenues on sales of products that are commercialized by the company’s partners. Partnership-related setbacks may weigh heavily on the company’s stock.
Also, stiff competition in the target market from big companies remains a constant worry. Drugs available 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 Vraylar.
Image: Bigstock
Alkermes' (ALKS) Drug Portfolio Aids Growth, High Reliance a Woe
Alkermes plc (ALKS - Free Report) has a portfolio of proprietary products focused on addiction, schizophrenia and bipolar I disorder, as well as other pipeline candidates that are being developed for neurodegenerative disorders and cancer.
The company derives revenues on net sales of its proprietary drugs Vivitrol (for alcohol and opioid dependence) and Aristada (schizophrenia), and manufacturing and royalty revenues on net sales of products commercialized by its partners.
In the first six months of 2021, Vivitrol generated sales worth $162.9 million and Aristada generated sales worth $127.8 million, reflecting year-over-year increases of 8.3% and 16.5%, respectively.
Shares of Alkermes have rallied 56.7% so far this year compared with the industry’s rise of 0.7%.
Image Source: Zacks Investment Research
In June 2021, the FDA approved the company's new drug application for Lybalvi (ALKS 3831) for the treatment of adults with schizophrenia and those suffering from bipolar I disorder. The company plans commercial launch of the drug in fourth-quarter 2021. Successful commercialization of the drug should boost Alkermes’ growth prospects in the days ahead.
Other than this, Alkermes has a robust pipeline. An important candidate in Alkermes’ pipeline is cancer immunotherapy nemvaleukin alfa (ALKS 4230), which is being evaluated under the ARTISTRY Clinical Development Program. The candidate is currently undergoing multiple studies for treating patients with solid tumors.
In August 2021, the FDA granted Fast Track designation to nemvaleukin alfa for the treatment of mucosal melanoma. In March 2021, the FDA also granted orphan drug designation to nemvaleukin alfa for the treatment of mucosal melanoma.
Alkermes has also partnered with pharma giant Merck (MRK - Free Report) for a phase III study to evaluate nemvaleukin alfa in combination with Keytruda for treating patients with platinum-resistant ovarian cancer.
We note that Alkermes is heavily dependent on manufacturing and royalty revenues on sales of products that are commercialized by the company’s partners. Partnership-related setbacks may weigh heavily on the company’s stock.
Also, stiff competition in the target market from big companies remains a constant worry. Drugs available 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 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.