Vivitrol Injects Optimism Into Alkermes (ALKS)

Vivitrol was strongly endorsed by the FDA's Psychopharmacologic Drugs Advisory Committee as a treatment for opioid dependence. In J.P Morgan view, ALKS is in a highly unique and attractive position with two FDA PDUFA dates in October alone. J.P. Morgan has a high level of conviction that both Vivitrol and Bydureon (diabetes) will indeed be approved, and also believe the company has underappreciated leverage to each product. JPM reiterates it's Overweight rating and are raising the Dec 2011 PT to $19. JPM says it shouldn't be hard for Vivitrol to exceed expectations. Considering the drug's commercial shortcomings in alcoholism, it's of little surprise that investor expectations remain low. However, not only is opioid addiction a very large market, but it is also a very real pharmaceutical market. J.P. Morgan raises its price target to $19 ALKS closed Thursday at $14.22