UPDATE: Hapoalim Raising Price Target On Alkermes (ALKS)

Hapoalim Securities is maintaining its Buy rating and raising its price target on shares of Alkermes

to $20 from $17 after the company did a deal with Elan

. In a note to clients, Hapoalim writes, "Alkermes and Elan Corporation announced that Alkermes will merge with Elan Drug Technologies (

), a profitable drug formulation and manufacturing business unit of Elan. The cash and stock transaction is currently valued at approximately $960 million. Elan will receive $500 million in cash and a 25% equity stake (31.9 million ordinary shares) in the new company (Alkermes plc). The transaction is expected to be immediately accretive to Alkermes' cash earnings. Alkermes plc will have diverse revenue streams from 25 commercialized products, with future near-term growth expected to be driven by five major products: Risperdal Consta, Invega Sustenna, Ampyra, Vivitrol and Bydureon. The combined company is expected to have growing product, royalty and manufacturing revenues in excess of $450 million annually. The transaction is expected to close in 3Q11 and Alkermes has obtained a commitment from its banking advisors to provide up to $450 million of term loans to finance the transaction." Hapoalim goes on to say, "Alkermes announced that it will merge with Elan Drug Technologies (

), a profitable drug formulation and manufacturing business unit of Elan. The cash and stock transaction is currently valued at approximately $960 million. Elan will receive $500 million in cash and a 25% equity stake in the new company and the transaction is expected to be immediately accretive to Alkermes' cash earnings. As a result of the merger, we are increasing our Price Target for Alkermes from $17 to $20. We reiterate our BUY rating." Shares of ALKS are up 24 cents to $14.71, a gain of 1.66% this afternoon.