Alkermes Plc (ALKS) Shares Plunge After Two of Three Drug Studies Fail to Meet Phase 3 Endpoint


Alkermes Plc (NASDAQ:ALKS) shares are down over 33% in the pre-market this morning after the company announced that two of their three Phase 3 efficacy studies for their drug ALKS 5461 have failed to reach their endpoints.

Alkermes Plc (NASDAQ:ALKS)’s FORWARD-3 and FORWARD-4 studies for the treatment of major depressive disorders both ended up being a bit of a disappointment for hopeful investors. There is some good news, though, the FORWARD-5 study is still ongoing, so there is still hope for that one.

“We are gaining important insights as we proceed with the FORWARD program for ALKS 5461. The third pivotal efficacy study, FORWARD-5, is ongoing and we plan to adapt it to incorporate findings from FORWARD-3 and FORWARD-4,” stated Elliot Ehrich, M.D., Chief Medical Officer of Alkermes. “Clinical trials of new medicines for the treatment of major depressive disorder are complicated by significant placebo response. We designed the FORWARD pivotal program to include three efficacy studies as we recognize that this is a challenging disease state where multiple clinical studies and expansive analyses are generally necessary to confirm the efficacy of a new medicine.”

The stock closed at $60.42 during the last trading session. It is down 6.35% since June 16, 2015 and is downtrending. It has outperformed the S&P500 by 2.51%.

From a total of 3 analysts covering Alkermes (NASDAQ:ALKS) stock, 3 rate it a “Buy”, 0 a “Sell”, and 0 a “Hold”. This means that 100% of the ratings are positive. The highest target price is $85 while the lowest target price is $79. The mean of all analyst targets is $82.67 which is 36.83% above today’s ($60.42) stock price. Alkermes was the topic of 3 analyst reports since September 1, 2015 according to the firm StockzIntelligence Inc. Barclays Capital maintained shares on October 7 with a “Overweight” rating.

The institutional sentiment decreased to 1.08 in Q2 2015. It’s down 0.32, from 1.4 in 2015Q2. The ratio dropped, as 32 funds sold all their Alkermes Plc shares they owned while 87 reduced their positions. 35 funds bought stakes while 94 increased their total positions. Institutions now own 153.06 million shares which is 7.82% more than the previous share count of 141.95 million in 2015Q2.

Meditor Group Ltd holds 31.89% of its total portfolio in Alkermes Plc, equating to 1.03 million shares. Cormorant Asset Management Llc owns 700,000 shares representing 6.56% of their total US portfolio. Moreover, Opus Point Partners Management Llc has 2.81% of their total portfolio invested in the company, equating to 86,864 shares. The New York-based Roanoke Asset Management Corp Ny has a total of 2.66% of their portfolio invested in the stock. Tamarack Capital Management Llc, a California-based fund reported 365,000 shares owned.

Alkermes Public Limited Company is a biopharmaceutical company. The company has a market cap of $9.07 billion. The Firm is engaged in researching, developing and commercializing, both with partners and on its own, pharmaceutical products that are designed to meet unmet medical needs of patients in major therapeutic areas. It currently has negative earnings. The Firm has a portfolio of more than 20 products and a clinical pipeline of product candidates being developed for the treatment of central nervous system disorders, such as addiction, schizophrenia and depression.