Jefferies & Company Reports on Alkermes

In a report released today, Jefferies & Company commented on Alkermes ALKS. In the report, Jefferies was mixed in its assessment of the company. Jefferies writes, “Alkermes is making investments to build a long term, sustainably profitable company. The EDT acquisition diversifies the revenue stream and makes the company profitable. While today's financial guidance is weaker than expected on higher R&D expense, revenue growth is respectable. Management believes R&D investments now will pay off down the road in the form of partnerships and product approvals. We forecast Consta sales over the next four years to be roughly flat from its current level. Risks: 1) Pipeline setbacks pose headline risk, 2) Bydureon non-approval, 3) EDT integration issues.” Jefferies currently has a Hold rating on Alkermes and a price target of $19. Shares of ALKS closed the trading day at $17.95, up from $17.67 at open.