On Thursday, H.C. Wainwright adjusted its price target for Alkermes (NASDAQ:ALKS) shares, a biopharmaceutical company, to $37.00, up from the previous $35.00. The firm maintained a Neutral rating on the stock following the company's report of robust second-quarter financial results.
Alkermes announced that the net sales of its proprietary products had reached $269.3 million, marking an approximate 16% year-over-year (YoY) increase. The standout performance was from Lybalvi, which generated sales of $71.4 million in the second quarter, surpassing the consensus estimate of $68 million. Lybalvi's revenues saw a significant jump of 52% compared to the same period last year, with total prescriptions climbing by 44%.
The company's other key product, Aristada, reported sales of $86 million in the first quarter, slightly below the consensus forecast of $87 million. This figure represents a 4% YoY growth, with new-to-brand prescriptions rising 6% from the first quarter of 2024.
The analyst from H.C. Wainwright cited the strong sales performance, especially for Lybalvi, but also highlighted the overall business growth as the reason for the price target increase. The new target reflects the firm's recognition of Alkermes' recent success and potential for continued growth.
InvestingPro Insights
Following the recent financial updates from Alkermes, insights from InvestingPro provide a deeper dive into the company's financial health and stock performance. With a market cap of $4.37 billion and a robust gross profit margin of 83.31% over the last twelve months as of Q2 2024, Alkermes shows a strong ability to generate revenue over its costs. Additionally, the company's stock has experienced a significant return over the last week, with a 7.55% price total return, reflecting positive investor sentiment.
InvestingPro Tips highlight that Alkermes holds more cash than debt, suggesting a stable financial position. Moreover, the company's liquid assets exceed its short-term obligations, which could reassure investors of its ability to meet immediate financial needs. It's important to note, though, that four analysts have revised their earnings downwards for the upcoming period, which could indicate potential challenges ahead. For those looking to explore these metrics further, InvestingPro offers additional tips that could guide investment decisions. Use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, and gain access to over 10 additional InvestingPro Tips for Alkermes.
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