Alkermes "neutral," target price reduced

12/02/08 - Robert W. Baird

NEW YORK, December 2 (newratings.com) - Analysts at Robert W Baird reiterate their "neutral" rating on Alkermes Inc (ALKS), while reducing their estimates for the company. The target price has been reduced from $14 to $11.

In a research note published this morning, the analysts mention that Alkermes has regained the commercialization responsibility of the Vivitrol product from CEPH. Alkermes is to pay $16 million to CEPH for buying manufacturing assets and would receive $11 million from CEPH as compensation for the expected losses, the analysts say. CEPH’s step indicates limited market potential of the product, Robert W Baird adds.