Bank of America downgraded Alkermes shares from Neutral to Underperform following a 92% year-to-date rally, citing stretched valuation and uncertain near-term catalysts. The firm highlighted looming clinical data in idiopathic hypersomnia, rising orexin-class competition and potential loss of Vivitrol exclusivity in early 2027 as key headwinds.
Bank of America shifted Alkermes from Neutral to Underperform after a 92% year-to-date share rally, arguing that the stock’s current valuation no longer offers an attractive risk-reward profile. The move reflects concerns over limited near-term catalysts and a desire to rebalance sector exposure.
The downgrade underscores the uncertainty around anticipated clinical trial results in idiopathic hypersomnia, which could disappoint relative to market expectations. Analysts also flagged intensifying competition in the orexin receptor antagonist space, which may pressure Alkermes’ pipeline prospects.
Alkermes faces the potential loss of exclusivity for its addiction‐treatment drug Vivitrol in early 2027, threatening a significant revenue stream. Generic entrants and licensing challenges around patent extensions heighten downside risk for the product’s post-patent sales.
