UPDATE: Bank of America Lowers PO on Alkermes on Reduced Bydureon Forecast

In a report published on Wednesday, Bank of America analyst Steve Byrne lowered the price objective on Alkermes ALKS from $29 to $27 and maintained an Underperform rating on the company.

In the report, Bank of America commented that, "We lowered our 2018 peak US Bydureon sales estimate to $730mn from $1.2bn due to slower TRx growth trends (see Charts 1 and 2) and potential upcoming competition from new entrants. We expect to see continued steady decline in total exenatide franchise share to Novo's Victoza, with Byetta losses more than offsetting Bydureon gains (ALKS receives 8% royalties on worldwide Bydureon sales). Our NPV estimate for Bydureon decreased from $5/sh to $3/sh, which lowered our PO to $27 ($29 prev.). Our Underperform rating is unchanged."

Alkermes closed Tuesday at $29.91.