Alkermes' (ALKS) commercial business appears capable of funding increasing investment in the orexin pipeline following a Q3 beat, RBC Capital Markets said in a note Tuesday.
The company reported Q3 revenue of $480.1 million, up from $394.2 million a year earlier and above consensus of about $464 million. RBC said Alkermes' portfolio posted a solid topline beat and 2026 revenue could exceed the $1.84 billion higher end of the company's guidance.
Alkermes' orexin pipeline presents substantial upside potential, the brokerage said, noting the FDA-approved Lumryz and upcoming trial data of alixorexton in idiopathic hypersomnia. RBC estimates Lumryz sales growing to $411 million in 2027 and $3.3 billion in alixorexton sales by 2035.
RBC has an outperform rating on Alkermes, with a higher price target of $57 from $56.
Alkermes shares were down more than 1% in Wednesday trading.
Price: 45.20, Change: -0.49, Percent Change: -1.07
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