In view of the fact that Alkermes Inc. experienced a decline in stock prices over the last month, the company’s shares were promoted by UBS analyst earlier on Tuesday.
The company’s stocks were upgraded from “Neutral” to “Buy” by UBS analyst, Ami Fadia, who promoted her rating on the shares. In her opinion, Alkermes’ profits could be transformed after it completes the purchase of Elan Drug Technologies, and the products sold and manufactured by the company have the potential to fetch over $4 billion worth of global sales by 2016.
Alkermes based in The Waltham, Mass. is involved in designing long-lasting drug delivery technology, through which it has been developing once-per-week diabetes treatment Bydureon in partnership with Amylin Pharmaceuticals Inc. and Eli Lilly and Co. According to the companies, the FDA is expected to pronounce its decision in late January.
In May, Alkermes is said to purchase Elan Drug Technologies in a $960 million deal that is expected to complete by the third quarter. With the close of this deal, Elan will receive $500 million worth cash and 25% stake in the company while Alkermes will reincorporate in Ireland. The addiction drug Vivitrol as well as the schizophrenia drug Risperdal Consta for Johnson & Johnson is being manufactured by Alkermes.
On July 8, Alkermes shares peaked to $20, and have declined only a quarter, ever since. The shares attained 93 cents, or 6.4 percent, to close at $15.56 on Tuesday.