Company

Bank

Analyst

Coverage

Opinion

Wk chg

2/3 cls

Alkermes plc (NASDAQ:ALKS)

Baird

Thomas Russo

Price target

Neutral

0%

$19.15

Leerink

Steve Yoo

Price target

Outperform

Russo raised his target to $18 from $17 on FDA's approval of once-weekly Bydureon exenatide from Amylin Pharmaceuticals Inc. (NASDAQ:AMLN) to treat Type II diabetes, and raised his target again to $20 after Alkermes reported better-than-expected earnings. Alkermes reported revenues for fiscal 3Q ending Dec. 31, 2011, of $125.6M, above his and consensus estimates of $114.7M and $113.9M, respectively. The drug delivery company also raised FY12 revenue guidance to $370-$400M, up from a range of $350-$380M. Alkermes will receive 8% royalties on net worldwide sales for the first 40M units of Bydureon and 5.5% afterwards. Bydureon is a long-acting release (LAR) formulation of synthetic exendin-4 that uses drug delivery technology from Alkermes.

Yoo raised his target to $22-$24 from $21-$23 on the Bydureon approval and sales of long-acting schizophrenia drugs reported by partner

Johnson & Johnson (NYSE:JNJ). The pharma reported 2011 global sales of Invega Sustenna paliperidone palmitate were up 18% to $499M, while 2011 global sales of Risperdal Consta risperidone were up 6% to $1.6B. Both drugs use drug delivery technologies from Alkermes.

Amylin Pharmaceuticals Inc. (NASDAQ:AMLN)

Baird

Thomas Russo

Price target

Market outperform

41%

$17.10

Summer Street

Carol Werther

Downgrade

Neutral (from buy)

Russo raised his target to $17 from $15 after FDA approved Amylin's once-weekly Bydureon exenatide to treat Type II diabetes. He believes the next positive catalyst in 2012 could be a successful ex-U.S. partnership for exenatide. Russo expects 2012 revenues for Bydureon of $79M. Bydureon is a long-acting release (LAR) formulation of synthetic exendin-4 that uses drug delivery technology from Alkermes plc (NASDAQ:ALKS).