UPDATE: Credit Suisse Initiates Alkermes at Neutral; Looking For Better Entry

Credit Suisse initiated coverage on Alkermes (NASDAQ: ALKS) with a Neutral rating and a $24.00 price target.

Credit Suisse said, "ALKS has an attractive long-term story, but we initiate at Neutral given the potential for a better entry point. Considering ALKS is up 21% YTD (Biotech up 7%, Pharma 4%), some 1H 2013 profit-taking and a potentially negative ALKS 5461 readout pose near-term risks. Conversely, a period of outperformance could start in 2H13 with our anticipated phase 3 success of aripiprazole lauroxil, a.k.a 9070 (2020 sales at $450MM; 70% probability of success). The 2014 dual chamber pen launch for Bydureon is also likely to be a positive inflection point for that franchise with positive readthrough to ALKS. At $20 the stock is more compelling given our near and long term views."

Alkermes closed at $22.19 on Wednesday.